By Shivangi Sarda
Nifty opened flat and after a slight drop in the initial tick, buys were seen at declines which strengthen the index. It is evolving in a positive way related to the beach. Until the index holds above the key 17450 level, it may once rebound towards 17777 areas. The breadth of the market continues to be in favor of advancing counters indicating specific action to stocks in the street.
India VIX is trading at higher levels and needs to cool below 16-15 zones for market stability. On the options front, the maximum OI Call is at 17,600 then 17500 strike while the maximum OI Put is at 17,400 then 17,000 strike. The call entry is seen at 17600 then 17700 strike while the Put entry is seen at 17400 then 17500 strike. The options data suggests yet another shift in the trading range between 17,200 and 17,700 zones.
Bank Nifty opened negatively and was under relatively pressure. It is rebounding after having crossed its lowest levels of the day before. Support rose to 37,000 levels as an upside hurdle exists at 37,777 areas.
From a sector perspective, IT, Realty, Pharma and Media stocks are trading in positive territory while all other sectors are trading in negative territory, among which Auto, FMCG and Banking stocks are the weakest. We are witnessing a long training in actions like Motherson Sumi, Apollo Hospital, Kotak Bank, Infosys, TVS Motor, Dalmia Bharat, BEL, Tata Consumer, Ultracemco, Titan etc. while a short build-up is visible in meters like LT, Asian Paint, SBI Card, Eicher Motors, Marico, PVR, Indigo, Balkrishna, Maruti, Adani Ports etc.
Nifty and Bank Nifty are recovering from lower levels and one can buy lower until it maintains key support levels to play the support based rebound movement. Traders are encouraged to play stock specific actions.
(Shivangi Sarda is Quantitative Analyst, Derivatives and Technical Research, Motilal Oswal Financial Services. The opinions expressed are those of the author. Please consult your financial advisor before investing.