Nifty needs to hold 18050 to extend rally to 18250-18500; watch ITC, SBI, ONGC stocks for action

4 days ago 12

Option information suggests a broader trading scope successful betwixt 17700 to 18500 zones portion an contiguous trading scope successful betwixt 17850 to 18300 zones. 

Nifty, Bank NiftyBank Nifty has to clasp supra 38500 zones to witnesser an up determination towards 38800 and 39000 levels. (Image: REUTERS)

By Shivangi Sarda

The Nifty 50 scale had opened spread up connected Wednesday and escalated passim the time to interaction yet different beingness precocious people of 18197 levels. The scale gave a consolidation breakout connected regular and play clip framework and decisively holding good supra 18000 zones. Bulls cheered the marketplace astatine higher zones and buying involvement swept crossed the street. It formed a Bullish candle connected the regular framework and closed with gains of astir 170 points.

India VIX was up by 1.58% from 15.84 to 16.10 levels. A tiny emergence successful volatility indicates a volatile plaything successful the marketplace astatine higher zones but wide comparative little VIX suggests that immoderate tiny diminution could beryllium bought and bulls are holding the choky grip successful the market. Now VIX needs to chill down beneath 15-14 zones to proceed the creaseless ride. On the Option front, Maximum Put OI is astatine 17500 followed by 17000 onslaught portion maximum Call OI is astatine 18000 followed by 18500 strike. Minor telephone penning is seen 18200 past 18100 onslaught portion Put penning is seen astatine 18000 strike. Option information suggests a broader trading scope successful betwixt 17700 to 18500 zones portion an contiguous trading scope successful betwixt 17850 to 18300 zones. 

Nifty and Bank Nifty are trading astatine beingness clip precocious zones and buying involvement should prolong the marketplace up of the festive season.

Bank Nifty enactment astatine 38350-38100 

Bank Nifty opened spread up yesterday and moved towards its all-time precocious of 38779 levels successful the archetypal tick. The time proceeded with immoderate consolidation and it closed with gains of astir 110 points. It formed a tiny Bearish candle connected regular standard with agelong little shadiness indicating buying was disposable but lone astatine declines. It has been forming higher lows from the past 8 sessions successful a row.

For play Bank Nifty, Maximum Put OI is astatine 38000 onslaught and maximum Call OI is placed astatine 40000 strike. We person seen Call penning successful 38700 and 38800 portion Put penning is witnessed astatine 38600 and unwinding successful 36500 strike. Now it has to clasp supra 38500 zones to witnesser an up determination towards 38800 and 39000 levels portion connected the downside large enactment is seen astatine 38350 and 38100 levels.

On the sectoral front, barring Realty space, each different sectors traded successful the affirmative territory retired of which Auto and Metal outperformed the broader market. 

We person a affirmative stance successful Auto (Mahindra & Mahindra, Ashok Leyland), Open up Theme Related stocks (Jubilant Foodworkd, Indian Hotels), Consumption (ITC, Tata Consumer, Marico), PSU Units (State Bank of India, BEL, ONGC, NTPC). A clasp supra 18050 zones is required to widen its determination towards 18250 and 18500 levels whereas connected the downside enactment is seen astatine 17947 and 17850 zones.

(Shivangi Sarda is simply a Quantitative Analyst, Derivatives and Technical Research astatine Motilal Oswal Financial Services. Views expressed are the author’s own. Please consult your fiscal advisor earlier investing.)

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