By Shivangi Sarda
Nifty index opened gap down by around 300 points on account of global weakness but took support near 17777 and witnessed massive strength thereafter. It filled the entire gap and moved by more than 300 points from its lower zone. It continuously moved northward with slight correction in the last hour and closed above 18000 marks with losses of 66 points. It formed a Bullish candle on a daily scale and bulls were in complete control for most part of the session.
India VIX was up by 4.62% from 17.47 to 18.27 levels. Volatility spiked to higher zones and now needs to come down for complete stability of the market. On Options front, Maximum Call OI is at 18000 then 18500 strike while Maximum Put OI is at 17000 then 17500 strike. Call writing is seen 18000 then 17900 strike while Put writing is seen at 18000 then 17500 strike. Option data suggests a shift in trading range in between 17500 to 18300 zones while an immediate trading range in between 17700 to 18200 zones.
Bank Nifty opened gap down by 565 points, but bulls were in action from the initial tick. It moved upwards like nobody’s business and headed towards 41600 zones. It formed a Bullish Engulfing candle on daily scale and gave its highest ever closing with gains of around 530 points.
For weekly Bank Nifty, Maximum Put OI is at 40000 then 39000 strike and maximum Call OI is placed at 41500 then 42500 strike. We have seen Call writing in 42500 while Put writing is witnessed at 41000 strike. Now it has to hold above 41250 zones, for an up move towards its lifetime high of 41829 and 42000 zones whereas supports are placed at 41000 and 40750 zones.
On the sectorial front, apart from IT, Realty, Pharma, Auto, FMCG, all other sectors traded in the positive territory out of which the most strength was seen in Banking, Metal, Media and Financial Services space.
Now, it has to hold above 17950 zones, for an up move towards 18200 and 18350 zones whereas support is placed at 17850 and 17777 zones. Traders are advised to buy on decline with positive stock specific action in VEDL, Ambujacem, India Cement, ACC, Indusind Bank, Can Bank, RBL Bank, NTPC, ZEEL, SBIN, CUB, Powergrid, Siemens, Oberoirlty, Jublfood, Aartiind, Marico, Kotak Bank, L&TFH, Indhotel, Bajfinance, ICICI Bank, Escorts and HDFC Bank while weakness in INFY, LTTS, TCS, PEL, Mphasis, Intellect, Voltas and Indigo.
(Shivangi Sarda is an Analyst – Equity Derivatives & Technicals, Broking & Distribution at Motilal Oswal Financial Services Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)