Nifty needs to hold above 17500 to hit 17777, Bank Nifty could scale 37250; check stocks to watch

Nifty needs to hold above 17500 to hit 17777, Bank Nifty could scale 37250; check stocks to watch

By Chandan Taparia

Nifty index opened flattish yesterday but managed to hold its opening levels and made yet another record all-time high of 17532 marks. The index witnessed sustained buying interest throughout the day at every small decline and pulled the index towards new high territory. It gave the highest-ever daily close and settled with gains of around 140 points. It formed a Perfect Bullish candle on daily scale and gave a breakout from its consolidation phase of the last few sessions. Now it has to continue to hold above 17500 zones to extend the move towards 17777 zones while on the downside support is seen at 17400 and 17250 levels.

Nifty is trading at higher levels and building strength as bullish bias is intact and banking stocks are picking up and supporting the bulls in Nifty Bank. Overall structure looks positive for the coming few sessions and traders are advised to use any declines as buying opportunity.

Bank Nifty may scale 37250

Bank Nifty opened negative on Wedneday but took support near to 36500 and headed towards 36950 zones. It witnessed good momentum in the latter part of the session and closed with gains of around 250 points. It formed a Bullish candle on daily scale and gave a highest recent daily close above a key hurdle of 36850 zones. Now it has to hold above 36750 to witness an up move towards 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 Call writing in 37000 and significant unwinding in 36500 while Put writing is witnessed at 36700 strike.

On the sectoral front, PSU Banks and IT counters drove the market whereas profit booking decline was seen in Media stocks. Stock specific Tata Power, Titan, Bharti Airtel, Mphasis, Tatachem, Coal India, ONGC, MFSL, Titan, BEL, SBI, HCL Tech, Indusind Bank, Bata India and L&T looks strong for 4-6% 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)