By Rajesh Palviya
Nifty began the week on a flat notice and shopping for momentum all through the session led it shut on a powerful notice. NSE Nifty 50 index closed at 16,221 with a achieve of 469 factors on a weekly foundation. On the weekly chart the index has shaped a protracted bullish candle forming greater High-low in comparison with earlier week and has closed above earlier week’s excessive indicating constructive bias.
The chart sample means that if Nifty crosses and sustains above 16300 ranges it could witness shopping for which might lead the index in the direction of 16500-16700 ranges. However if the index breaks beneath 16000 stage it could witness revenue reserving which might take the index in the direction of 15800-15600. For the week, we count on the Nifty to commerce within the vary of 16600-16000 with a constructive bias. The every day and weekly energy indicator RSI is transferring upwards and is quoting above its reference line indicating constructive bias.
Nifty Derivative Outlook
Nifty futures closed at 16225 on a constructive notice with 5.99% lower within the open curiosity indicating Short Covering. Nifty Futures closed at a premium of 5 factors in comparison with the day past premium of 15 factors. FIIs have been Buyers in Index Futures to the tune of 743 crores and have been Sellers in Index Options to the tune of 1039 crores, Buyers within the Stock Futures to the tune of 892 crores. Net Buyers within the by-product section to the tune of 767 crores.
India VIX index is at 18.24 v/s 19.20. Nifty ATM name possibility IV is presently 2.96 whereas Nifty ATM Put possibility IV is quoting at 6.96.
Nifty Put choices OI distribution exhibits that 16100 has highest OI focus adopted by 16000 & 15800 which can act as assist for present expiry. Nifty Call strike 16200 adopted by 16400 witnessed vital OI focus and should act as resistance for present expiry.
Bank Nifty Technical Outlook
Bank Nifty began the week on a flat notice and shopping for momentum all through the week led it shut on a powerful notice. Bank Nifty closed at 35124 with a achieve of 1585 factors on a weekly foundation. On the weekly chart the index has shaped a large bullish candle and closed above earlier week’s excessive indicating constructive bias.
The chart sample means that if Bank Nifty crosses and sustains above 35300 stage it could witness shopping for which might lead the index in the direction of 35500-36000 ranges. However if index breaks beneath 35000 stage it could witness promoting which might take the index in the direction of 34500-34300. For the week, we count on Bank Nifty to commerce within the vary of 36000-34300 with a constructive bias. The every day and weekly energy indicator RSI is transferring upwards and is quoting above its reference line indicating constructive bias.
Bank Nifty Derivative Outlook
Bank Nifty closed at 35174 on constructive notice with 3.81% lower in open curiosity indicating Short Covering. BankNifty Futures closed at a premium of fifty factors in comparison with the day past premium of 62 factors. Bank Nifty Put choices OI distribution exhibits that 34900 has highest OI focus adopted by 34800 which can act as assist for present expiry.
Bank Nifty Call strike 35000 adopted by 34900 witnessed vital OI focus and should act as resistance for present expiry.
Sectors and shares for coming week
We count on sectors like Automobile, Capital Goods, FMCG, Banking & Financial, and Cement are prone to present bullishness this week. Stocks like Siemens, ABB India, Tata Motors, TVS Motors, Mahindra & Mahindra (M&M), Hindustan Unilever (HUL), United Spirits, State Bank of India, ICICI Bank, Canara Bank, Bajaj Finance, M&M Fin, Srtransfin, UltraTech Cements, India Cement are prone to present bullishness this week.
NSE Nifty 50 buying and selling technique for 14 July F&O expiry
The technique which we’re suggesting for this weekly expiry dated 14th July is a Moderately Bullish technique referred to as as CALL LADDER, which entails Buying of 1 lot of NIFTY 16,250 Call @ 114 & promoting of 1 lot every of 16,350 Call @ 70 & one lot of 16,450 Call @ 40. The price of the technique entails outflow of Rs 200 which is the utmost loss if Nifty trades and stays beneath 16,250 ranges on expiry .The most revenue of Rs 4,800 might be attained above 16,350 ranges, whereas technique will begin making loss if Nifty crosses 16,550, therefore it’s advisable to exit the technique in complete to keep away from limitless losses above 16,550. Break Even factors of the technique are 16,254 on upside & 16,546 on the decrease aspect.
(Rajesh Palviya, Vice President – Research ( Head Technical & Derivatives), Axis Securities. Views expressed are the writer’s personal.)
Source: www.financialexpress.com”
