By Chandan Taparia
Nifty index opened flattish yesterday but managed to hold its opening levels and made however a different record all-time higher of 17532 marks. The index witnessed sustained purchasing interest all through the day at just about every tiny decline and pulled the index towards new higher territory. It gave the highest-ever every day close and settled with gains of about 140 points. It formed a Perfect Bullish candle on every day scale and gave a breakout from its consolidation phase of the last handful of sessions. Now it has to continue to hold above 17500 zones to extend the move towards 17777 zones even though on the downside help is seen at 17400 and 17250 levels.
India VIX moved up by 1.10% from 13.58 to 13.73 levels. India VIX demands to hold beneath 13 zones to continue the bullish momentum. On Option front, Maximum Put OI is at 17000 followed by 16500 strike even though maximum Call OI is at 17500 followed by 17300 strike. Call writing is seen at 17900 then 17600 strike while Put writing is seen at 17400 then 17300 strike. Option information suggests a broader trading variety in among 17200 to 17800 zones even though an quick trading variety in among 17350 to 17700 zones.
Nifty is trading at greater levels and creating strength as bullish bias is intact and banking stocks are choosing up and supporting the bulls in Nifty Bank. Overall structure appears positive for the coming handful of sessions and traders are advised to use any declines as purchasing chance.
Bank Nifty may possibly scale 37250
Bank Nifty opened adverse on Wedneday but took help close to to 36500 and headed towards 36950 zones. It witnessed great momentum in the latter aspect of the session and closed with gains of about 250 points. It formed a Bullish candle on every day scale and gave a highest current every day close above a essential hurdle of 36850 zones. Now it has to hold above 36750 to witness an up move towards 37250 levels even though on the downside help are seen at 36500 then 36250 levels.
For weekly Bank Nifty, Maximum Put OI is at 36500 strike and maximum Call OI is placed at 37000 strike. We have seen Call writing in 37000 and considerable unwinding in 36500 even though Put writing is witnessed at 36700 strike.
On the sectoral front, PSU Banks and IT counters drove the marketplace whereas profit booking decline was seen in Media stocks. Stock precise Tata Power, Titan, Bharti Airtel, Mphasis, Tatachem, Coal India, ONGC, MFSL, Titan, BEL, SBI, HCL Tech, Indusind Bank, Bata India and L&T appears powerful for 4-6% move more than the next coming sessions.
(Chandan Taparia is the Vice President – Equity Derivatives & Technical, Broking & Distribution at Motilal Oswal Financial Services Ltd. Views expressed are the author’s personal. Please seek the advice of your economic advisor ahead of investing)