Nifty needs to hold 16442 for an up-move to 16666-16800; Watch HAL, HDFC, and M&M stocks for action

Volatility was slightly up on Wednesday and negated its lower highs of the last five sessions which are giving discomfort to the bulls. Now it needs to fall below 18 zones for market stability.

Nifty OI
For monthly Bank Nifty, Maximum Put OI is at 35000 then 35500 strike and maximum Call OI is placed at 36000 then 36500 strike. (Image: PEXELS)

By Shivangi Sarda

The Nifty index opened flattish on Wednesday and remained under pressure for the first half of the session followed by a steep fall in the latter part. It touched an intra-day low near 16442 marks and witnessed a decent bounce-back of around 100 points in the last hour. It closed negative with losses of around 60 points and formed a Bearish candle on a daily scale with longer lower shadows indicating buying supported the index at lower zones. It negated its higher lows of the last three sessions and facing hurdle near its 50 DEMA.

India VIX was up by 1.78% from 20.47 to 20.85 levels. Volatility was slightly up on Wednesday and negated its lower highs of the last five sessions which are giving discomfort to the bulls. Now it needs to fall below 18 zones for market stability. On the options front, maximum Call OI is at 17000 then 17500 strike while Maximum Put OI is at 16000 strike. Call writing is seen at 16600 then 16700 strikes while Put writing is seen at 16500 then 16400 strike. Options data suggests a broader trading range in between 16200 to 16800 zones.

Bank Nifty opened negative and after slipping down to 35285, it witnessed a stellar recovery in the last hour of the session. It closed above its 50 EMA on daily frame and closed with gains of around 130 points. It made a Bullish candle on the daily scale with the smart recovery of the entire day’s fall.

For monthly Bank Nifty, Maximum Put OI is at 35000 then 35500 strike and maximum Call OI is placed at 36000 then 36500 strike. We have seen Call writing in 36200 with unwinding at 38000 while Put writing is witnessed at 35300 strike. Now it has to hold above 35500 zones for an up move towards 36000 and 36100 zones while on the downside support exists at 35250 and 35000 zones.

On the sectoral front, apart from Banking, Financial Services and Metal, all the other sectors traded in red with most weakness seen in IT, Pharma, Realty and FMCG sectors. Now it has to hold 16442 zones for an up move towards 16666 and 16800 zones whereas supports are placed at 16400 and 16250 zones. Traders are advised to buy on the decline with a positive stock specific action in BEL, ICICI Prudential, HAL, CUB, Voltas, Bandhan Bank, Canara Bank, Ashokley, Coal India, Coromandel, HDFC Life, M&M, M&M Financial Services, Jubliant Foodworks, and HDFC while weakness in Bajaj Auto, Hindalco, Nestle Ind, Britannia, Bajaj Finserv, Ipca Labs, Sun Pharma and Escorts.

(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.)

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Most Read In Cafeinvest
Photos