By Shivangi Sarda
Nifty index opened optimistic on Wednesday however failed to carry above 17130 zones and cascaded down all through the session. Weakness bought a tailwind within the second half of the session after the RBI Statement and the index breached its essential help zones to the touch the intraday low of 16623 ranges. It fashioned a powerful Bearish candle on the every day scale and closed with losses of 390 factors.
India VIX was up by 7.88% from 20.28 to 21.87 ranges. Volatility is at highest ranges of final 24 buying and selling periods, it spiked above 22 zones in the course of the day on account of the occasion and general increased ranges counsel wild swings and discomfort available in the market. On Option entrance, Maximum Call OI is at 17000 then 17500 strike whereas Maximum Put OI is at 16500 then 16000 strike. Marginal Call writing is seen at 17000 then 17200 strike whereas Put writing is seen at 16600 then 16500 strike. Options knowledge suggests a wider buying and selling vary between 16400 to 17000 zones as a consequence of increased volatility.
Bank Nifty opened optimistic however failed to carry above 36300 zones and slipped down by nearly 1200 factors from its increased zones. It remained comparatively resilient within the first half of the session however was overshadowed by weak spot and it closed with losses of 900 factors. It fashioned a powerful Bearish candle on every day scale and helps shift decrease.
For weekly Bank Nifty, Maximum Put OI is at 35000 then 35500 strike and most Call OI is positioned at 36500 then 36000 strike. We have seen important Call writing in 36000 whereas Put writing is witnessed at 32000 with unwinding at 36000 strike. Now until it holds under 35500 zones, weak spot might be seen in direction of 35250 and 35000 zones whereas resistances are positioned at 35750 and 36000 zones.
On sectoral entrance, all of the sectors are traded within the detrimental territory out of which Media, Realty, Banking, Financial Services and Pharma house witnessed probably the most weak spot.
Now until it holds under 16888 zones, weak spot might be seen in direction of 16500 and 16350 zones whereas hurdles are positioned at 17000 and 17071 zones. Traders are suggested to remain mild with optimistic inventory particular motion in Britannia, Petronet, Powergrid and NTPC whereas weak spot in Voltas, Naukri, Apollo Hospital, DLF, Ramco Cement, PEL, National Aluminium, Jubilant Foodworks, Lal Path Labs, Ashokley, Bajaj Finance, Pidilitind, Bank Baroda, Sun TV, Hindalco, Dixon, Can Bank, Berger Paint, SRF, Glenmark, Titan, Divislabs, Dr Reddy’s Laboratories, Axis Bank, Maruti Suzuki India, and State Bank of India.
(Shivangi Sarda is an Analyst – Equity Derivatives & Technicals, Broking & Distribution at Motilal Oswal Financial Services Ltd. Views expressed are the creator’s personal. Please seek the advice of your monetary advisor earlier than investing.)
Source: www.financialexpress.com”