By Chandan Taparia
The Nifty index opened flat to positive and remained slightly dull in the first half of the session on Wednesday. It failed to hold 17350 and drifted towards 17250 zones but picked up during the next half to close on flattish note. It breached its previous day’s low but buying interest at declines made it to close above 17350 levels. It formed a Hammer sort of candle on daily scale with long lower shadow indicating buying interest is intact at any declines. Now it has to continue to hold above 17300 zones to extend the move towards 17500 and 17777 zones while on the downside support is seen at 17200 and 17050 levels.
Nifty took a breather and Bank Nifty is 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 any declines.
Bank Nifty
Bank Nifty opened positive and momentum in the banking stocks pulled the index towards 36850 levels. It outperformed the broader market today and closed near its day’s high with gains of around 300 points. It formed a Bullish candle on daily scale and recovered it losses of the previous session. Now it has to hold above 36750 to witness an up move towards 37000 and 37250 levels while on the downside support are seen at 36500 then 36250 levels.
For weekly Bank Nifty, Maximum Put OI is at 36500 strike and maximum Call OI is placed at 37000 strike. We have seen significant Call in 36500 while Put writing is witnessed at 36700 with minor unwinding at 35500 strike.
Stocks to watch out for
On the sectoral front, the Banking and financial services space drove the market whereas profit booking decline was seen in IT and Media stocks. We have a positive view in the Bank Nifty index for a move towards 37250 zones. Stock specific Kotak Bank, HDFC AMC, NAM INDIA, IEX, Trent and ICICI Prudential looks strong for 4-8% move over the next coming sessions.
(Chandan Taparia is the Vice President – Equity Derivatives & Technical, Broking & Distribution at Motilal Oswal Financial Services Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)
