By Shivangi Sarda
NSE Nifty 50 index opened flattish on Wednesday and witnessed buying interest from the first hour of the session. It took support near 16442 levels and headed towards 16650 zones then finally closed with gains of around 160 points. It formed a Bullish Engulfing candle or an Outside Bar on daily scale and negated its lower highs of the last two sessions.
Bank Nifty opened negative but managed to hold the support of 36250 zones and moved higher throughout the day. The dominance of bulls took the index above 36800 zones to close with gains of around 375 points. It formed a Bullish Engulfing candle on daily scale with support based buying seen at declines.
For weekly Bank Nifty, Maximum Put OI is at 36000 then 36500 strike and maximum Call OI is placed at 37000 then 38000 strike. We have seen Call writing in 38000 with unwinding at 36500 while significant Put writing is witnessed at 36700 strike. Now it has to hold above 36666 for an up move towards 37000 and 37250 zones whereas supports are placed at 36666 and 36250 zones.
On the sectoral front, all the sectors traded in the positive territory out of which Pharma, Media and Banking space outperformed the market.
Now Nifty 50 has to hold above 16616 for an up move towards 16750 and 16888 zones whereas support is intact at 16442 zones. Traders are advised to buy on any declines and be with positive stock-specific action in Coromandel, Exideind, PVR, Ramco Cement, Sun Pharma, HAL, State Bank of India, Page Industries, Asian Paints, Larsen & Toubro, DLF, Grasim, BEL, Ultratech Cement, Bajaj Finance, Trent, CONCOT and Axis Bank while weakness in Mcdowell, M&M Fin, Tata Power and UBL.
(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.)