Two months’ of boredom lastly came to an finish as the marketplace kicked off the August month with a bang. There have been a number of attempts made not too long ago to attain the millstone of 16000 but every single time international markets became a spoil sport. This time it was surely not the case. We had total assistance from the international peers which offered impetus to attain the magical figure of 16000. The moment we surpassed and sustained above it, there was no hunting back. In the last 4 trading sessions, Nifty added more than 3% to the bulls’ kitty to hasten towards the 16300 mark.
During last week, the Nifty had a intelligent recovery from the reduce variety but the banking index kept sulking all through. As everybody knew, if the Nifty has to attain new highs, it wouldn’t have been doable without the need of the contribution of this heavyweight space. Fortunately, it didn’t disappoint this time courtesy to initial charge from the ICICI Bank and then it was all SBI and HDFC Bank’s show to attain the greater boundary of Bank Nifty about 36000 – 36200.
Now, all eyes are on this space, due to the fact any sustainable move beyond 36200 would outcome in an extension of its rally towards its record higher. This will surely bode properly for the bulls as we might then see Nifty reaching or even moving beyond the next milestone of 16500. In our sense, brief term traders can get started lightening up positions if the Nifty reaches the described levels in the coming days.
As far as supports are concerned, 16200 followed by 16000 are most likely to be viewed as as powerful assistance for the benchmark whereas for Bank Nifty, the equivalent zone is visible about 35500 – 35200.
In F&O space, we have witnessed a powerful purchasing in futures segment in last 3 out 4 trading sessions, which is clearly reflected in the value action. In the up move, the place writers added very good quantity of positions in 16150 – 16300 strikes followed by decent open interest addition in 16300 – 16400 get in touch with possibilities. Now with new weekly expiry to kick in, there is no key activity seen possibilities segment and therefore, it would be exciting to see the all round development on Friday.
(Sameet Chavan is Chief Analyst – Technical and Derivatives, Angel Broking. Views expressed are the author’s personal.)