By Shivangi Sarda
Nifty 50 index opened positive and headed towards 17884 in the very first half of yesterday’s session but it could not hold at greater zones. Bears dragged the index and it drifted towards 17613 marks by breaking under the earlier day’s lows. It closed close to intr-day low with losses of about 175 points and wiped away earlier day’s gains. It formed a Bearish Engulfing candle on a day-to-day scale and threatening the brief term trend with sustained provide at greater zones. India VIX moved up by 5.69% from 16.39 to 17.33 levels. Spurt in volatility right after the decline of last 4 sessions has once more provided a volatile swing to the broader industry. Now VIX desires to cool down under 15-14 zones to continue the smooth ride of the industry.
Options information shows Maximum Put OI is at 17000 followed by 17500 strike whilst maximum Call OI is at 18000 followed by 18500 strike. Minor get in touch with writing is seen 17800 then 17700 strike whilst Put writing is seen at 17800 then 17700 strike. Options information suggests a broader trading variety in involving 17200 to 18200 zones whilst an instant trading variety in involving 17500 to 17900 zones.
Nifty and Bank Nifty faced some weakness and fell regardless of touching greater zones due to improved volatility. Stock precise action to sustain the industry at the present juncture.
Bank Nifty opened positive and even right after crossing 38100 levels, weakness in the street brought on the index to cascade by more than 600 points from greater levels. It respected its earlier day’s low levels but closed with losses of about 220 points. It formed a Bearish candle on day-to-day scale with extended upper shadow which indicates that the absence of adhere to up shopping for is missing in the industry.
For weekly Bank Nifty, Maximum Put OI is at 37000 strike and maximum Call OI is placed at 38000 strike. We have seen Call writing in 38000 and 37900 whilst Put writing is witnessed at 36500 and unwinding in 37500 strike. Now it has to hold above 37500 zones to witness an up move towards 37850 and 38100 levels whilst on the downside significant assistance is seen at 37300 and 37000 levels.
On the sectoral front, all the sectors slide into the damaging territory as the day concluded out of which Metal, PSU Banks, Pharma and Realty stocks faced the most hit.
We have a positive view on Chemical stock (SRF, Tata Chemical, Deepak Nitrite, Navin Fluorine), Open up Theme Related stocks (PVR, Indian Hotels, IRCTC), Consumption (Marico, Tata Consumer Products, Marico). A hold close to 17700 is needed for a move towards 17777 and 17900 levels whereas on the downside assistance is seen at 17580 and 17450 zones.
(Shivangi Sarda is a Quantitative Analyst, Derivatives and Technical Research at Motilal Oswal Financial Services Ltd. Views expressed are the author’s personal.)