As far as levels are concerned, 17900 – 17950 remains to be a sturdy wall and on the flipside, 17600 has become sacrosanct support now
By Sameet Chavan
Nifty started the week on a positive note on Monday and witnessed some momentum to reclaim 17700 with ease. Bank Nifty too witnessed a similar move, where decent short covering was seen. On Tuesday, the global cues were a bit nervous, but still, we managed to shrug off the negativity and rallied higher post the opening to surpass the 17800 mark. However, one day ahead of the weekly expiry, our markets finally reacted to the global weakness. The index consolidated in a range till noon, but witnessed a sharp selloff in the latter half to end the day tad above 17600.
The call writers looked convinced on Wednesday but on the expiry day, it was absolutely a shocking opening for them. Global markets which looked shaky on Wednesday had a spectacular recovery overnight. As a result, our markets opened with a decent bump up and remained at higher levels for the remaining part of the session. This led to covering up of positions for these writers and in the process; Nifty ended the weekly expiry around 17800. Considering the recent behaviour of the market, it is pretty clear that the bulls are not willing to let loose their firm grip on the market so easily.
But we reiterate, it is that sort of phase of the market, which may not be easy to participate in. We are not at all convinced trading aggressively on the long side at this moment, yes there could be odd thematic moves that can be focused on but do not want to go all guns blazing at such elevated levels.
As far as levels are concerned, 17900 – 17950 remains to be a sturdy wall and on the flipside, 17600 has become sacrosanct support now. The way we are following US markets of late; all eyes on them how they move going ahead. Also, as far as Bank NIfty is concerned, nobody knows what it is up to. Clearly directionless and is flirting around key support as well as resistance levels.
(Sameet Chavan is Chief Analyst – Technical and Derivatives, Angel One Limited. Views expressed are the author’s own.)