By Sameet Chavan
Nifty began the week on a positive note on Monday and witnessed some momentum to reclaim 17700 with ease. Bank Nifty also witnessed a related move, exactly where decent brief covering was seen. On Tuesday, the worldwide cues have been a bit nervous, but nonetheless, we managed to shrug off the negativity and rallied greater post the opening to surpass the 17800 mark. However, one day ahead of the weekly expiry, our markets ultimately reacted to the worldwide weakness. The index consolidated in a variety till noon, but witnessed a sharp selloff in the latter half to finish the day tad above 17600.
The contact writers looked convinced on Wednesday but on the expiry day, it was certainly a shocking opening for them. Global markets which looked shaky on Wednesday had a spectacular recovery overnight. As a outcome, our markets opened with a decent bump up and remained at greater levels for the remaining aspect of the session. This led to covering up of positions for these writers and in the course of action Nifty ended the weekly expiry about 17800. Considering the current behaviour of the industry, it is quite clear that the bulls are not prepared to let loose their firm grip on the industry so quickly.
But we reiterate, it is that sort of phase of the industry, which may possibly not be simple to participate in. We are not at all convinced trading aggressively on the extended side at this moment, yes there could be odd thematic moves that can be focused on but do not want to go all guns blazing at such elevated levels.
As far as levels are concerned, 17900 – 17950 remains to be a sturdy wall and on the flipside, 17600 has turn out to be sacrosanct assistance now. The way we are following US markets of late all eyes on them how they move going ahead. Also, as far as Bank NIfty is concerned, no one knows what it is up to. Clearly directionless and is flirting about crucial assistance as properly as resistance levels.
(Sameet Chavan is Chief Analyst – Technical and Derivatives, Angel One Limited. Views expressed are the author’s personal.)