By Shivangi Sarda
The Nifty index opened flattish but moved in a volatile manner within a range of 100 points throughout the session on Wednesday. It touched a new 52 week high of 18442 and finally closed with gains of 6 points after the tussle between negative and positive territory. It formed a small bodied Bullish candle on a daily frame with a longer lower shadow indicating support based buying and has been forming higher highs from the last four sessions.
Bank Nifty opened flattish and moved in the positive direction throughout the day and touched its all-time high of 42611 levels. It gave its highest ever closing and closed with gains of around 160 points. It formed a Bullish candle on daily frame and has been making higher lows from the last four sessions.
For weekly Bank Nifty, Maximum Put OI is at 42000 then 42500 strike and maximum Call OI is placed at 42500 then 43000 strike. We have seen Call writing in 42500 with unwinding at 42300 while Put writing is witnessed at 42500 strike. Now it has to hold above 42500 zones for an up move towards 42750 and 43000 zones whereas supports are placed at 42250 and 42000 zones.
Now, it has to hold above 18350 zones, for an up move towards 18500 then 18600 zones whereas supports are placed at 18250 and 18188 zones. Traders are advised to be with positive stock specific action in HAL, Kotak Mahindra Bank, Amara Raja Battery, TCS, HDFC, Infosys, HDFC Bank, Sunpharma, Bharti Airtel and Cipla while weakness in Metropolis, Indiabulls Housing Finance, Apollo Tyre, Aarti Industries, PVR, MFSL, SunTv, IEX, M&M Fin, Bajaj Finance, Cholafin, PEL, ZEEL, Bandhan Bank and ICICI Pru.
(Shivangi Sarda is an Analyst – Equity Derivatives & Technicals, Broking & Distribution, Motilal Oswal Financial Services Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)