By Shivangi Sarda
NSE Nifty 50 index opened positive but remained highly volatile in a broader trading range of 250 points. The first half saw slight weakness followed by recovery and finally concluded in losses of around 30 points. It formed a Bearish candle on daily scale and lack of follow up buying is seen at higher zones which signals mixed market cues.
Bank Nifty opened positive but moved in a volatile manner within a range. It closed with losses of around 220 points after taking support at its 50 EMA. It formed a Bearish candle on daily scale and hovering near its key moving averages from the last three sessions.
For weekly Bank Nifty, Maximum Put OI is at 36000 then 38000 strike and maximum Call OI is placed at 38500 then 39000 strike. We have seen Call writing in 38500 while Put writing is witnessed at 38000 strike. Now, it has to hold above 38000 zones for an up move towards 38250 and 38500 zones whereas support can be seen at 37750 and 37500 zones.
On the sectorial front, barring Realty, Pharma and FMCG all other sectors traded in the negative territory out of which Banking, Media and Metal showed the most weakness.
Now it has to hold above 17300 zones, for an up move towards 17500 and 17777 zones whereas support can be seen at 17200 and 17000 zones. Nifty and Bank Nifty are witnessing range bound move with momentum fizzled out at higher zones and advised to be with stock specific action in Divis Laboratories, ONGC, Hindustan Petroleum Corporation (HPCL), Adani Ports and Special Economic Zone, Indian Oil Corporation (IOCL), Coromandel International, Bata India, Voltas, Bharti Airtel, Havells India, Mahindra & Mahindra, Dr.Reddy’s Laboratories and Kotak Mahindra Bank.
(Shivangi Sarda, Quantitative Analyst, Derivatives and Technical Research, Motilal Oswal Financial Services. Views expressed are the author’s own.)