By Shivangi Sarda
NSE Nifty 50 index formed a small bodied bearish candle on daily scale with a long upper shadow indicating pressure at higher zones. It has been making lower highs – lower lows from the last six trading sessions. India VIX was up by 2.43% from 21.56 to 22.09 levels on Wednesday. Volatility is hovering at higher zones which is giving discomfort to the bulls. On Options front, Maximum Call OI is at 17000 then 17200 strike while Maximum Put OI is at 16500 then 16800 strike. Call writing is seen 17000 then 16900 strike while minor Put writing is seen at 16700 then 16600 strike. Option data suggests a broader trading range in between 16500 to 17100 zones.
Bank Nifty formed a Bearish candle on a daily scale and has been making lower highs – lower lows from the last six sessions. For monthly Bank Nifty, Maximum Put OI is at 36000 then 37000 strike and maximum Call OI is placed at 40000 then 39000 strike. We have seen Call writing in 38000 with unwinding at 41000 while Put writing is witnessed at 36000 with unwinding at 38500 strike. Now till it remains below 38000 zones, weakness could be seen towards 37500 and 37250 zones whereas hurdles are placed at 38250 and 38500 zones.
On the sectorial front, apart from Pharma, IT and Auto, all other sectors traded in the negative territory out of which the most weakness was seen in Banks, Metal, Financial Services, Media, FMCG and Reality space.
Now, till it remains below 17000 zones, weakness may be seen towards 16666 and 16500 zones whereas hurdles are placed at 17071 and 17166 zones. Traders are advised to be with positive stock specific action in India Cement, Asian Paints, Glenmark, Lupin, ABFRL, Sun Pharma, Dr Reddy’s, Marico, UBL, Dixon Technologies, MGL, Eicher Motors, Cipla, Hindustan Unilever, HCL Tech and Britannia Industries while weakness in PNB, Chambal Fertilisers, AU Bank, Motherson Sumi Wiring, Hindalco Industries, MCX, Indus Power, JSW Steel, M&M Fin, ITC, Tata Steel, Reliance Industries Ltd (RUL), Axis Bank, Birlasoft and Housing Development Finance Corporation (HDFC).
(Shivangi Sarda, Analyst – Equity Derivatives & Technicals, Broking & Distribution, Motilal Oswal Financial Services. Views expressed are the author’s own.)