By Shivangi Sarda
Nifty index opened gap up by 80 points but witnessed profit booking at higher zones and dropped to 17472 zones. However, it respected its support zones and moved in a range-bound manner in the second half of the session. It formed a small-bodied Bearish candle on daily scale and closed with gains of 25 points. India VIX was up by 0.21% from 17.45 to 17.48 levels. Volatility needs to cool down to 15-16 zones for stability and unidirectional move in the market. On Option front, Maximum Call OI is at 18000 then 17500 strike while Maximum Put OI is at 17000 then 16500 strike.
Call writing is seen at 17600 then 17700 strike while Put writing is seen at 17500 and 17400 strike. Option data suggests a shift in trading range in between 17200 to 17800 zones while an immediate trading range in between 17300 to 17700 zones. Bank Nifty opened gap up by 238 points but a lack of follow up buying was seen at higher zones and it sank to 40200 zones. It moved in a range of 360 points and closed with gains of around 55 points. It formed a small-bodied Bearish candle on daily scale but has been forming higher highs from the last four sessions.
For weekly Bank Nifty, Maximum Put OI is at 39000 then 38000 strike and maximum Call OI is placed at 40500 then 41000 strike. We have seen Call writing in 40600 with unwinding at 40000 while Put writing is witnessed at 40500 with unwinding at 39500 strike. Now it has to hold above 40250 for an up move towards 40750 and 41000 zones whereas supports are placed at 40000 and 39750 zones. On sectorial front, apart from IT, Metal, PSU Banks, Media and Auto space, all other sectors traded in the positive territory out of which the most strength was seen in Financial Services, FMCG, Realty, Private Banks and Pharma space.
Now, it has to remain above 17442 zones, for an up move towards 17650 and 17777 zones whereas supports are placed at 17350 and 17250 zones. Traders are advised to be with positive stock-specific action in Concor, Syngene, TVS Motor, PIIND, Apollo Tyre, IRCTC, Siemens, ITC, MCX, Axis Bank, Nestleind, Reliance and Ultracemco while weakness in LTTS, Astral, BSoft, Ashokley, NTPC, BPCL and Maruti.
(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.)