Nifty needs to hold above 15735 for up move towards 15888-16000; watch Bosch, ONGC, Reliance for action

Nifty has to hold above 15735 zones for an up move towards 15888 and 16000 zones whereas on the downside supports shifts to 15650 and 15555 zones.

stock markets, nifty, bank nifty
Volatility has been trending upwards from the last three sessions which is giving volatile swings to the bulls and pressure to the index at higher zones

By Shivangi Sarda

The Nifty index opened negative by 150 points but it managed to hold near to 15700 zones and witnessed a decent recovery towards 15850 zones. However it failed to hold at higher zones and moved in a decelerated manner with a slight drop in the last hour of the day. It finally closed with losses of around 50 points but formed a Bullish candle on daily scale as it closed higher than its opening zones. India VIX was up by 2.10% from 21.45 to 21.90 levels. Volatility has been trending upwards from the last three sessions which is giving volatile swings to the bulls and pressure to the index at higher zones.

On Option front, Maximum Call OI is at 16000 then 16500 strike while Maximum Put OI is at 15500 then 15700 strike. Call writing is seen at 16100 then 16000 strike while Put writing is seen at 15700 then 15600 strike. Option data suggest a trading range in between 15550 to 16100 levels. Bank Nifty opened negative by more than 350 points and moved in a narrow range of around 200 points during the day. It formed a Doji candle on daily frame as it closed near its opening zones with losses of around 370 points. Formation of small bodied candles from the last couple of session indicates tug of war between bulls and bears to make or break 33333 zones decisively.

For monthly Bank Nifty, Maximum Put OI is at 33000 then 32000 strike and maximum Call OI is placed at 34000 then 35000 strike. We have seen Call writing in 33300 with unwinding at 36000 while Put writing is witnessed at 33300 with unwinding at 33500 strike. Now, it has to cross and hold above 33333 zones for an up move towards 33750 and 34000 zones whereas supports are placed at 33000 and 32750 zones. On the sectorial front, we witnessed mild positive action in Auto, metal and Real Estate while weakness in FMCG, IT, Banks and Financial Services.

Now it has to hold above 15735 zones for an up move towards 15888 and 16000 zones whereas on the downside supports shifts to 15650 and 15555 zones. Traders are advised to buy on decline with positive stock specific action in Bosch India, Trent, ONGC, Reliance, Coal India, Petronet, Cummins India, TVS Motor, Indian Hotels Company, ACC, Ashok Leyland, Adani Enterprises, Bharti Airtel, Eicher Motor, ITC, Hindalco and CUB while weakness in RBL Bank, Escorts, AU Bank, HDFC Life, IEX, Bandhan Bank, Axis Bank, Muthoot Finance, Marico and Titan.

(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.)

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