By Shivangi Sarda
Nifty index opened gap up and support based buying pulled the index to 17477 levels. It closed near its day’s high with gains of around 200 points. It formed a Bullish candle on daily scale and negated its lower highs – lower lows of the last four sessions.
Bank Nifty opened a gap up and moved in the positive direction towards 38650 zones. Selective private heavyweights witnessed buying interest and the Index closed with gains of around 580 stocks. It formed a Bullish candle on daily scale and negated its lower highs – lower lows of the last three sessions.
For weekly Bank Nifty, Maximum Put OI is at 38000 then 37000 strike and maximum Call OI is placed at 39000 then 40000 strike. We have seen minor Call writing in 39000 and unwinding at 38000 while Put writing is witnessed at 38500 strike. Now, it has to hold above 38500 zones, to witness an up move towards 38850 and 39000, whereas support exists at 38250 and 38000 zones.
On the sectorial front, barring PSU Banks, strength could be seen in all the sectors out of which Auto, Metal and Media stocks outperformed the broader market.
Now Nifty has to hold above 17350 zones for an up move towards 17600 then 17777 zones where on the downside support exists at 17250 and 17100 zones. Both the indices are witnessing good up move and advised to apply stock buy on decline with stock specific action in National Aluminium Co., Coal India, Tata Chemicals, Adani Enterprises, Maruti Suzuki, Cholamandalam Investment and Finance Company, Indian Oil Corporation, Aditya Birla Fashion and Retail (ABFRL), Federal Bank, InterGlobe Aviation (IndiGo), Bajaj Auto, IndusInd Bank, Ashok Leyland, Hindalco Industries, Hindustan Aeronautics Ltd, Siemens, HDFC Bank and AU Small Finance Bank.
(Shivangi Sarda, Quantitative Analyst, Derivatives and Technical Research, Motilal Oswal Financial Services. Views expressed are the author’s own.)