By Chandan Taparia
The Nifty 50 index opened positive on Wednesday and touched however an additional record higher of 17225 levels and has been on a streak. It moved in a variety of 150 points with a slight profit booking decline in the second half of the session. It formed a Bearish candle but continues forming greater highs from the last 4 sessions. Now it has to continue to hold above 16950-17000 zones to extend the move towards 17250 zones when on the downside help is seen at 16900 and 16750 levels.
India VIX fell down by 2.31% from 14.52 to 14.18 levels. Fall in Volatility from greater zone suggests that industry decline could be purchased. On the Options front, Maximum Put OI is at 16500 followed by 16000 strike when maximum Call OI is at 17000 followed by 17500 strike. Call writing is seen at 17500 then 17200 strike when Put writing is seen at 17000 then 16900 strike. Option information suggests a broader trading variety in involving 16500 to 17500 zones when an quick trading variety in involving 16850 to 17250 zones.
Nifty and Bank Nifty are approaching greater levels and creating strength as bullish bias is intact. Overall structure appears positive for the coming couple of sessions and traders are advised to purchase on declines.
Bank Nifty opened gap up and headed towards 36997 levels but it missed hitting a important hurdle of 37000 and witnessed profit booking decline in the second half of the session. It outperformed the broader industry and closed with gains of about 150 points. It formed a Shooting Star sort of candle on the day-to-day scale with lengthy upper shadow indicating adhere to up obtaining is missing at greater zones. Now it has to continue to hold above 36500 zones to witness an up move towards 37000 and 37250 levels when on the downside help are seen at 36250 then 36000 levels.
For weekly Bank Nifty, Maximum Put OI is at 36500 strike and maximum Call OI is placed at 38000 strike. We have seen Call writing in 38000 and unwinding in 36400 when Put writing is witnessed at 36500 with minor unwinding at 34500 strike.
On the sectoral front, Realty and Banking counters drove the industry whereas weakness was seen in IT and Metal stocks.
(Chandan Taparia – Vice President – Equity Derivatives & Technicals, Broking & Distribution, Motilal Oswal Financial Services Ltd. Views expressed are the author’s personal. Please seek advice from your monetary advisor just before investing.)