By Shivangi Sarda
Nifty index opened constructive on Wednesday and remained range-bound inside a buying and selling vary of 100 factors for probably the most a part of the day. During the day it witnessed shopping for curiosity from 17050 to 17186 marks however the absence of observe up was not permitting it to carry at larger zones. It shaped an Inside Bar and a Harami candle on each day scale and closed the day with positive aspects of round 180 factors.
India VIX fell by 5.55% from 19.77 to 18.67 ranges. Spike in volatility after the declines of the final six weeks is inflicting some discomfort amongst bulls. On the Options entrance, most Call OI is at 18000 then 17500 strike whereas Maximum Put OI is at 17000 then 16500 strike. Marginal Call writing is seen at 17400 then 17200 strike whereas Put writing is seen at 17100 then 17000 strike. Options information suggests a wider buying and selling vary between 16800 to 17350 zones.
Bank Nifty opened constructive however comparatively underperformed the market. It moved in a zig-zag trend all through the session and closed flattish with losses of round 25 factors. It shaped a small-bodied Bearish candle and an inside Bar on the each day scale.
For weekly Bank Nifty, most Put OI is at 36000 then 34500 strike and most Call OI is positioned at 38000 then 37000 strike. We have seen Call writing in 36500 whereas Put writing was witnessed at 34500 strike. Now until it holds under 36500 zones, weak spot may be seen in direction of 36000 and 35750 whereas hurdles are positioned at 36750 and 37000 zones.
On sectoral entrance, PSU Banks, Media, Metal and Financial Services shares traded within the destructive territory and the Auto, IT, FMCG and Pharma sectors confirmed probably the most energy.
Now for the day viewpoint, it has to carry above 17050 zones, for an up transfer in direction of 17250 and 17350 whereas assist may be seen at 16950 and 16800 zones. However, until Nifty doesn’t surpass 17350 zones, general medium-term setup may discover stress at larger zones. Traders are suggested to use the purchase on decline technique and be with inventory particular motion in Ambujacem, Ultracemco, BPCL, Reliance Industries, Astral, Ramcocem, UPL, Hindpetro, IOC, Bharti Airtel, BEL, Havells, and AU Bank whereas weak spot in LTI, SAIL, IGL, IRCTC, LT, and Glenmark.
(Shivangi Sarda is an Analyst – Equity Derivatives & Technicals, Broking & Distribution, Motilal Oswal Financial Services Ltd. Views expressed are the writer’s personal.)
Source: www.financialexpress.com”