By Shivangi Sarda
Nifty index on Wednesday opened positive and after touching high of 18178 zones, it sank lower to 18048 level. It moved in a consolidated manner and witnessed profit booking at higher zones. It has been making higher highs from the last four sessions but closed with losses of around 60 points. It formed a Bearish candle similar to Bearish Engulfing on daily frame and gave up its entire gains of the previous session. India VIX was up by 3.30% from 16.13 to 16.66 levels. Volatility has been slightly up from the last two sessions but overall lower volatility is sustaining the index at higher zones. Now it needs to afloat at these levels for market stability.
On Option front, Maximum Call OI is at 18500 then 19000 strike while Maximum Put OI is at 17000 then 17500 strike. Marginal Call writing is seen at 18200 then 18300 strike while marginal Put writing is seen at 18100 then 18000 strike. Option data suggests a broader trading range in between 17600 to 18600 zones while an immediate trading range in between 17900 to 18300 zones.
Bank Nifty opened positive but cascaded down throughout the day and drifted lower to 41060 zones. It failed to hold above its opening zone of 41472 level and finally closed with losses of around 140 points. It formed a Bearish candle on daily frame and has been moving in a meek manner from the last six sessions.
For weekly Bank Nifty, Maximum Put OI is at 41000 then 40500 strike, and maximum Call OI is placed at 41500 then 42000 strike. We have seen Call writing in 41800 with unwinding at 43000 while Put writing is witnessed at 40500 with unwinding at 41500 strike. Now it has to hold above 41000 zones for an up move towards 41500 and 41650 zones whereas supports are placed at 40750 and 40500 zones.
Now, Nifty has to hold above 18000 zones, for an up move towards 18200 then 18350 zones whereas supports are placed at 17888 and 17777 zones. Traders are advised to be with positive stock-specific action in NMDC, Cholafin, VEDL, Suntv, IRCTC, Sun Pharma, Syngene, Hindalco, Bata India, ITC, Poly Cab, Jindalstel, JK Cement, MGL, Federal Bank, Reliance and ABB while weakness in Lichsgfin, Chambalfert, Apollo Hospital, Can Fin Homes, PNB, M&M Fin, L&TFH, Britannia, Bandhan Bank and Hindunilvr.
(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.)