Nifty options data suggests wider trading range of 16600-17200, Bank Nifty needs to hold above 35000

Nifty options data suggests wider trading range of 16600-17200, Bank Nifty needs to hold above 35000

By Chandan Taparia

Nifty 50 index opened gap up and moved in a positive to range-bound manner throughout the session yesterday. The last hour of the day saw a quick pullback and the index inched towards 17000 zones. It surpassed its previous day’s high and closed with gains of around 180 points. It formed a Bullish candle on daily scale and has been forming higher highs – higher lows from the last two trading sessions.

Bank Nifty outlook

Bank Nifty opened gap up and moved in a positive to muted manner for the most part of the day. It closed above 35000 levels with gains of around 420 points. It formed a Bullish candle on daily scale and covered its losses of the last two sessions.

For weekly Bank Nifty, Maximum Put OI is at 34000 strike and maximum Call OI is placed at 36000 strike. We have seen Call writing in 35200 strike with unwinding at 37500 while Put writing is witnessed at 34800 strike. Now it has to hold above 35000 zones, for it to move towards 35250 and 35500 zones whereas support shifts higher to 34600 and 34350 zones.

What to watch out for

On sectoral front, all the sectors traded in the positive territory, out of which Realty, Pharma, Metal and PSU Banking sectors showed the most strength and buying interest in the market.

On stocks front, positive stance was seen PI SRF, Nationalum, IEX, Auropharma, Hindalco, L&TFH, IRCTC, Tata Power, UPL, Cadila, Lupin, Biocon, Eicher Motor, Cumminsind, Mindtree, Godrejcp, Havells, Sunpharma, LT, Deepakntr, Reliance, ABFRL, LTI, UBL and Mcdowell while weakness in SBI Life, IOC and Grasim.

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