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Bulls may take Nifty to 17000, if it holds above 16600; 5 things to know before opening bell

Ahead of the last trading session of the week, SGX Nifty was up with marginal gains suggesting a flat to positive start for Dalal Street.

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Global cues were positive on Friday morning. (Image: REUTERS)

Domestic stock markets soared closed with gains on the weekly futures & options expiry session, as bulls remained in control. S&P BSE Sensex rose 284 points or 0.51% to settle at 55,681 while the NSE Nifty 50 index gained 84 points or 0.51% to end the day at 16,605. Bank Nifty regained the 36,000 mark. Ahead of the last trading session of the week, SGX Nifty was up with marginal gains suggesting a flat to positive start for Dalal Street. Global cues were also supportive of the bulls after Wall Street indices soared higher. 

Global watch: NASDAQ index rose 1.36% on Thursday, followed by a 0.99% jump in the S&P 500 and 0.51% upmove in Dow Jones. Among Asian stock markets Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, and KOSDAQ were all in the green while KOSPI slipped. 

What do the charts say: On Thursday, a reasonable positive candle was formed on the daily chart, that engulfed the small negative candle of the previous session on the upper side, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Minor negativity created after a range movement at the hurdle on Wednesday was negated and the Nifty closed the day above 16600 levels,” he added.

Levels to watch out for: “A close above 16600 today can catapult Nifty to test 17000 by next week. Data is quite positive for both the indices and key index components,” said Rahul Sharma, Director & head – Research, JM Financial. He added that support is now placed at 16485 for Nifty and 35900 for Bank Nifty. Meanwhile, Nagaraj Shetti believes the next upside resistance to be watched is around 16800 levels while immediate support is seen at 16480 levels.

FII and DII trades: Foreign Institutional Investors (FII) were once again seen buying stocks on Dalal Street, pumping in Rs 1,799 crore. Domestic Institutional Investors (DII) continued their selling spree, pulling out Rs 312 crore from Dalal Street. 

Call and Put OI: Rahul Sharma of JM Financial said that options concentration is seen at 16500 straddle and 16000 puts along with 17000 calls. While Palak Kothari, Senior Technical Analyst, Choice Broking said writing was seen at 16800 calls and 17000 and on the put side it was at 16500 level. “PUT CALL Ratio of August expiry is at 1.33 which points out bulls are active,” Kothari said. 

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