HomeFinanceNifty to trade in 16200-15600 variety this week, Bank Nifty remains in...

Nifty to trade in 16200-15600 variety this week, Bank Nifty remains in uptrend Infosys, Tata Steel in focus


By Rajesh Palviya

Nifty began the prior week on a positive note and remained consolidated for most component of the week nonetheless Friday’s gains pulled the index greater to finish in green. Nifty closed at 15799 with a obtain of 129 points on a weekly basis.



On the weekly chart the index has formed a little Bullish candle carrying a extended decrease shadow indicating getting help at decrease levels. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 15850 level it would witness getting which would lead the index towards 15950-16100 levels. However if index breaks beneath 15600 level it would witness promoting which would take the index towards 15450-15350. Nifty is trading above 20 and 50 day SMA’s which are crucial brief term moving averages, indicating positive bias in the brief term. Nifty continues to stay in an uptrend in the medium term, so getting on dips continues to be our preferred technique. For the week, we count on Nifty to trade in the variety of 16200-15600 with a positive bias.



The weekly strength indicator RSI and momentum oscillator Stochastic have each turned positive and are above their respective reference lines indicating positive bias.

Nifty derivative outlook

Nifty in the present week has seen Long develop up with a cost obtain of 116 points (.74%) and total OI addition of 15.11 lac shares(13.14%) growing from 115.05 Lac share to 130.17 Lac shares. Nifty traded at a premium of 18 points compared to 31 points, when the sentiment indicator Computer Ratio is presently trading at 1.35 which is above the median line but nevertheless in a comfy zone indicating positive bias. In Nifty the higher OI on the Contact side in the weekly expiry scheduled 17th June is at 16,000(29.90L), 15,800(27.63L) &amp 16,200(24.49) strike, with 16,000 &amp 16,200 acting as a robust resistance wherein there has been writing of 12.95Lac shares &amp 13.52 Lac shares respectively.

The higher OI on the Place side is at 15,700(24.96L), 15,800(20.25L) &amp 15,600(19.28L) strike, with 15,800 &amp 15,700 acting as a robust help as there has been of writing of 13.64Lac shares &amp 5.98 Lac shares respectively. The tentative variety for the present week is probably to be amongst 16,200 to 15,600. IndiaVix indicator of market place volatility is presently at 14.10% down by -11.53% from 15.94% of last week and has been in downward trajectory from its current higher of 17.96% suggesting self-confidence and stability in present market place trend and additional descend from these levels will augment for more of an uptrend in market place.

Bank Nifty outlook

Bank Nifty began the prior week on a flat note and remained in a narrow variety (35800-35000) all through the week, indicating lack of strength on either side. Bank Nifty closed at 35047 with a loss of 244 points on a weekly basis.

On the weekly chart the index has formed a little Bearish candle with shadows on either side indicating indecisiveness amongst participants concerning the path. Since the previous 3 weeks, index is consolidating inside 35800-34400 levels indicating brief term consolidation. Hence any either side breakouts will indicate additional path.

The chart pattern suggests that if Bank Nifty crosses and sustains above 35500 level it would witness getting which would lead the index towards 36000-36500 levels. However if the index breaks beneath 34600 level it would witness promoting which would take the index towards 34000-33700. Bank Nifty is trading above 20 , 50 and one hundred day SMA’s which is an crucial brief term moving typical, indicating positive bias in the brief term. Bank Nifty continues to stay in an uptrend in the medium term, so getting on dips continues to be our preferred technique. For the week, we count on Bank Nifty to trade in the variety of 36500-34500 with mixed bias.

The weekly strength indicator RSI and momentum oscillator Stochastic have each turned positive and are above their respective reference lines indicating positive bias

Bank Nifty derivative outlook

Bank Nifty in present week has seen Long Unwinding with a cost reduce of -399 points (-.96%) and total OI unwinding of -.64 lac shares (-3.37%) decreasing from 19.10 Lac share to 18.45 Lac shares and traded at premium of 122 points compared to 217 points. In Bank Nifty the higher OI on the Contact side in the weekly expiry scheduled 17th June is at 35,500(12.69L), 36,000(11.37L) &amp 37,000(8.80L) strike, with 36,000 &amp 35,500 acting as a robust resistance wherein there has been writing of 5.73Lac shares &amp 7.00 Lac shares respectively. The higher OI concentration on the Place side is at 34,500(7.64L), 34,000(7.86L) &amp 33,000(6.64L) strike, with 34,000 &amp 34,500 acting as a robust help as there has been of writing of 3.78Lac shares &amp 3.51Lac shares respectively. The tentative variety for the present week is probably to be amongst 36,500 to 34,000 with 35,000 acting as an crucial level as each Call &amp Put has higher OI concentration of 12.91L &amp 13.26L shares respectively and also have seen considerable OI addition of 7.50L &amp 7.34L shares.

Sectors and stocks in focus this week

We think the IT, Pharma &amp Healthcare, Metal, Power ,Oil &amp Gas and Realty sectors can do properly in the close to term . One can focus on stocks like Aurobindo Pharma, Dr Reddy’s Laboratories, Dr Lal Pathlabs, NMDC, Tata Steel, Infosys, Coal India, DLF, as these can do properly in close to term. From Midcap space one can focus on stocks like Skipper, ACE Construction, Kiri Industries, JKIL and DCB Bank.

(Rajesh Palviya is Vice President– Research (Head Technical &amp Derivatives) at Axis Securities Limited. The views expressed are the author’s personal. Please seek the advice of your economic advisor just before investing.)



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