Nifty needs to hold above 17350 for further upside, support shifts higher to 17250

Bank Nifty has to hold above 37000 for it to move up towards 37500 and 37750 zones whereas on the downside, support can be seen at 36800 and 36500 zones.

Nifty
Option data suggests a wider trading range in between 17000 to 17750 zones for Nifty. (Image: PEXELS)

By Shivangi Sarda

The Nifty index opened gap up on Wednesday and moved in the positive territory throughout the session. Buying interest aided the bulls and the index headed towards 17500 zones during the day. It formed a Bullish Marubozu sort of candle on a daily scale and closed with gains of around 300 points. India VIX was down by 6.47% from 18.46 to 17.26 levels. Volatility has fallen from its recent highs but comparatively higher VIX needs to cool down further for complete grip of bulls in the market. On Option front, Maximum Call OI is at 18000 then 17500 strike while Maximum Put OI is at 17000 then 16000 strike. Call writing is seen at 17900 then 17600 strike while Put writing is seen at 17200 then 17300 strike. Option data suggests a wider trading range in between 17000 to 17750 zones.

37,000 crucial levels for Bank Nifty 

Bank Nifty opened gap up and rose to 37380 levels. Banking stock have been outperforming the broader market from the last four sessions. It formed a small bodied Bullish candle with gains of around 650 points and has been forming higher highs – higher lows on daily frame.

For weekly Bank Nifty, Maximum Put OI is at 36500 strike and maximum Call OI is placed at 38000 strike. We have seen Call writing in 37300 strike while significant call unwinding and Put writing is witnessed at 36500 strike. Now it has to hold above 37000 for it to move up towards 37500 and 37750 zones whereas on the downside, support can be seen at 36800 and 36500 zones.

Watch out for these stocks 

On stocks front, positive stance was seen Biocon, MCX, Granules, Mindtree, Auropharma, Bajfinance, IEX, IRCTC, Bata, ABFRL, Maruti, Hindalco, Dixon, Page Ind, SBIN, Aartind Ind, Tata Motors, ICICI Bank, Adaniports, TVS Motor, Mcdowell and Techm while weakness in Concor, Divislabs and IOC. Now it has to continue to hold above 17350 for an up move towards 17600 and 17777 zones whereas on the downside, support has shifted higher to 17250 and 17100 zones.

(Shivangi Sarda is a Quantitative Analyst, Derivatives and Technical Research, Motilal Oswal Financial Services. Views expressed are the author’s own. Please consult your financial advisor before investing.

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