By Chandan Taparia 

The Nifty 50 index opened positive on Wednesday and touched yet another record high of 17225 levels and has been on a streak. It moved in a range of 150 points with a slight profit booking decline in the second half of the session. It formed a Bearish candle but continues forming higher highs from the last four sessions. Now it has to continue to hold above 16950-17000 zones to extend the move towards 17250 zones while on the downside support is seen at 16900 and 16750 levels.

Nifty and Bank Nifty are approaching higher levels and building strength as bullish bias is intact. Overall structure looks positive for the coming few sessions and traders are advised to buy on declines.

Bank Nifty opened gap up and headed towards 36997 levels but it missed hitting a key hurdle of 37000 and witnessed profit booking decline in the second half of the session. It outperformed the broader market and closed with gains of around 150 points. It formed a Shooting Star sort of candle on the daily scale with long upper shadow indicating follow up buying is missing at higher zones. Now it has to continue to hold above 36500 zones to witness an up move towards 37000 and 37250 levels while on the downside support are seen at 36250 then 36000 levels.

For weekly Bank Nifty, Maximum Put OI is at 36500 strike and maximum Call OI is placed at 38000 strike. We have seen Call writing in 38000 and unwinding in 36400 while Put writing is witnessed at 36500 with minor unwinding at 34500 strike.

On the sectoral front, Realty and Banking counters drove the market whereas weakness was seen in IT and Metal stocks.

(Chandan Taparia – Vice President – Equity Derivatives & Technicals, Broking & Distribution, Motilal Oswal Financial Services Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)