By Shivangi Sarda
Nifty index opened negative and moved in a volatile way within a wider range of 175 points. It faced some weakness at higher levels but took support near 17667 zones and rebounded slightly to close with losses of around 100 points. It formed a small bodied candle on daily scale in between the broader trading range which indicates decisiveness. Even though buying interest was seen from lows but absence of follow-up activity is seen at higher zones.
India VIX was up by 2.79% from 18.79 to 19.32 levels. Volatility spiked ahead of global uncertainties and a tug of war between the bulls and bears. On Options front, Maximum Call OI is at 18000 then 18500 strike while Maximum Put OI is at 17500 then 17000 strike. Call writing is seen 17800 then 18000 strike while Put writing is seen at 17800 then 17600 strike. Option data suggests a broader trading range in between 17200 to 18200 zones while an immediate range in between 17500 to 18000 zones.
Bank Nifty opened negative and moved in a negative to range bound manner for the first half of the session but then witnessed some strength in the latter half. Overall it moved in a consolidative manner with the pressure of bears at 41500 zones but support-based buying seen at lower zones. It formed a Doji sort of candle on daily scale and closed the day with losses of around 265 points.
For weekly Bank Nifty, Maximum Put OI is at 40000 then 41000 strike and maximum Call OI is placed at 43000 then 42000 strike. We have seen Call writing in 41300 while Put writing is witnessed at 41000 with unwinding at 41500 strike. Now it has to cross and hold above 41250 zones to continue the positive momentum towards 41500 and lifetime high of 41840 zones while on the downside support exists at 41000 and 40750 levels.
On sectorial front, apart from FMCG, all other sectors traded in the negative territory out of which the most weakness was seen in Metal, Pharma, Realty, IT and Banking space.
Now, it has to hold near to 17667 zones, for an up move towards 17850 and 18000 zones whereas support exists at 17550 and 17442 zones. Traders are advised to be with positive stock-specific action in Britannia, ITC, Cumminsind, Marico, Page Ind, Hindunilvr, NMDC, Apollo Hospital, Bajaj Finance, Coal India and ZEEL while weakness in ACC, Shree Cement, Ibulhsgfin, DLF, Biocon, Ultracemco, Godrejprop, GNFC, Nationalum, LT, Berger Paint, Tatamotors, PVR, Srtransfin and Gail.
(Shivangi Sarda is an Analyst – Equity Derivatives & Technicals, Broking & Distribution, Motilal Oswal Financial Services Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)