Nifty and Bank Nifty are witnessing positive to range-bound movement and needs to hold at key zones.
By Shivangi Sarda
The Nifty 50 index opened positive on Wednesday and held its gains at higher zones but remained stuck in a narrow range of 100 points in the first half. The last hour saw a quick pullback move and it inched towards 17000 zones. It gave the highest daily close of the last 14 trading sessions with intraday gains of around 310 points. It formed a Bullish candle on the daily scale and has been forming higher highs from the last three sessions.
India VIX was down by 9.77% from 26.73 to 24.11 levels. Volatility came down from its highs and needs to cool down further to 22-20 zones for complete dominance of bulls in the market. On the Options front Maximum Call OI is at 18000 then 17000 strike while Maximum Put OI is at 16000 then 16500 strike. Call writing is seen at 17000 then 17200 strike while marginal Put writing is seen at 16000 then 16800 strike. Options data suggests a trading range in between 16500 to 17350 zones.
Bank Nifty needs to hold above 35750
Bank Nifty opened gap up and headed towards 35800 zones in the initial tick. Heavyweight banking stocks performed well and drove the upward movement. It closed with gains of around 730 points. It formed a Bullish candle on daily scale and has been making higher highs – higher lows from the last three sessions.
For weekly Bank Nifty, Maximum Put OI is at 34000 then 33000 strike and maximum Call OI is placed at 36500 then 36000 strike. We have seen Call writing in 35800 with significant unwinding at 35500 while Put writing is witnessed at 35500 strike. Now it has to hold above 35750 zones, for an up move towards 36000 and 36250 zones whereas support can be seen at 35500 and 35250 zones.
Watch stock specific action in ….
On the sectoral front, all the sectors traded in the positive territory out of which Realty, Metal, Banking and Auto stocks showed the most strength. Now Nifty has to hold above 16850 zones, for an up move towards 17200 and 17350 zones whereas support exists at 16666 and 16500 zones. Nifty and Bank Nifty are witnessing positive to range-bound movement and needs to hold at key zones. Traders are advised to apply a ‘buy on decline’ strategy and watch stock specific action in Ultratech Cement, Axis Bank, Hindalco, Infosys, Tech Mahindra, IOC, Bajaj Auto, and Indusind Bank.
(Shivangi Sarda is an Analyst – Equity Derivatives & Technicals, Broking & Distribution at Motilal Oswal Financial Services Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)