Nifty may fall to 18000 below 18250, Bank Nifty resistance at 43000; Glenmark, Divi’s Labs among stocks to buy

Nifty may fall to 18000 below 18250, Bank Nifty resistance at 43000; Glenmark, Divi’s Labs among stocks to buy

By Shivangi Sarda

Nifty index opened positive but witnessed a dead cat bounce and slipped from the initial hour of the session. It witnessed greater intensity of selling in the second half and broke its immediate support zones and closed with losses of around 180 points. It formed a Bearish Engulfing candle on daily scale and has been making lower lows from the last five sessions.

Bank Nifty opened positive but bears took over and it nosedived by 1250 points during the day. It touched 42363 zones and finally closed with massive losses of around 750 points. It formed a Bearish Engulfing candle on a daily scale and supports are gradually shifting lower.

For weekly Bank Nifty, Maximum Put OI is at 42000 then 42500 strike and maximum Call OI is placed at 43500 then 44500 strike. We have seen significant Call writing in 43500 while minor Put writing is witnessed at 42000 with major unwinding at 43000 strike. Now till it holds below 43000 zones, weakness could be seen towards 42250 and 42000 zones whereas hurdles are placed at 43000 and 43339 zones.

Now, till it holds below 18250 zones, weakness may be seen towards 18081 and 18000 zones whereas hurdles are placed at 18350 and 18442 zones. Traders are advised to be with positive stock-specific action in Glenmark, Lal Path Labs, Divi’s Labs, Lupin, Apollo Hospital, Cipla, Abbot India, IPCA Labs, Sun Pharma, TCS and Nestle India while weakness in City Union Bank, Delta Corp, Indian Hotel, PVR, Punjab National Bank (PNB), Ambuja Cement, India Cement, IRCTC, Cholamandalam Financial Holdings, Trent, Dixon, ABB, GNFC, ABFRL, DLF, Oberoi Realty and Maruti.

(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.)