F&O expiry outlook- Nifty resistance at 18350-18600; support placed at 18200

F&O expiry outlook: Nifty resistance at 18350-18600; support placed at 18200

– By Sameet Chavan

We had yet another gap up opening yesterday morning as indicated by the SGX Nifty. However this is followed by similar price action where we saw minor dip in the initial hour which eventually got bought into. Thereafter, the benchmark index remained in a range and with the help of some late recovery, managed to close almost at the highest point of the day tad above 18250.

As of now, we do not expect a runaway move in the forthcoming session and hence, traders are advised to keep focusing on individual stocks. Because we can clearly see some sector churning happening. Today banking was sulking throughout the session and IT remained quiet. But Metals stocks had a fabulous comeback as they kept soaring throughout the session. One needs to keep concentrating on such potential movers in order to fetch decent gains. As far as supports are concerned, 18200 followed by 18100 should be considered as intraday levels and the base remains at 18000.

On the weekly expiry day, Nifty witnessed long formations whereas Bank Nifty ended its winning streak and saw some long unwinding. FIIs sold in the cash segment but were buyers in the Index futures. On the options front, highest buildup in the coming weekly series is placed at 19000 CALL before that 18300 and 18500 is also a resistance. On the flip side, 18000 put has good amount of buildup indicating a good base formation.

(Sameet Chavan is Chief Analyst – Technical and Derivatives, Angel One Limited. Views expressed are the author’s own.)