Domestic stock markets soared higher on the weekly futures & options expiry session on Thursday. S&P BSE Sensex rallied 515 points or 0.88% to settle at 59,332 while the NSE Nifty 50 index jumped for the fourth consecutive session to end at 17,659. India VIX has meanwhile, tanked 6% to sit just above 18 levels. Ahead of the last trading session of the week, SGX Nifty was down in the red, suggesting a tepid start to the day’s trade while global cues were mixed. Wall Street equity indices closed in opposite direction on Thursday.
Global Watch: Dow Jones closed 0.08% higher while the S&P 500 slipped 0.07% and the NASDAQ fell 0.58%. Among Asian stock markets, Shanghai Composite, Hang Seng, KOSPI, and KOSDAQ were in the red. TOPIX and Nikkei 225 were up with gains.
What do the charts say: Nifty has been trading above 200-DMA as well as with the support of 61.8% Fibonacci retracement I.e., 17360 of its previous down moves from 18630 to 15160 which indicate strength for upside, according to Palak Kothari, Senior Technical Analyst, Choice Broking.
Levels to watch out for: With the Nifty edging closer to 17800, Rahul Sharma, Director & Head – Research JM Financial is advising investors to sell their mistakes and raise cash or get into quality stocks. Meanwhile, Palak Kothari sees support for Nifty to have shifted to around 17350 levels while on the upside 17800 may act as an immediate hurdle. “Overall, the bullish momentum is intact as nifty hold 17350 levels, stock specific action can be seen as Nifty IT & Pharma stocks looking attractive for upside movement,” Kothari added.
Call and Put OI: For the next weekly expiry, the highest Call OI was witnessed at 17700 level followed by 17800 while on the put side was at 17500 level. “The momentum indicators MACD was trading with a positive crossover on a daily time frame which suggests strength in the counter,” said Palak Kothari.
Inflation data: The July inflation print will be released later today. Retail inflation is expected to have eased in July after having dropped to 7.01% in June from 7.04% in the month of May. Last week, the RBI lowered its inflation forecast for July-September to 7.1% from 7.4% earlier. Inflation, however, will still remain above RBI’s tolerance level of 2%-6%.