08 Sep , 2022 By : Monika Singh
Nifty index opened gap down by 136 points but recovered well from its lower zones after taking support near 17442-17480 zones. It moved in a volatile manner thereafter but remained within a range. Nifty has been moving in a broader trading range of 300 points in between 17468 to 17764 zones from last five trading sessions where declines are being bought but follow up is missing at higher zones. It closed negative and broke its higher lows formation of the last five sessions but formed a Bullish candle on daily scale.
India VIX was down by 0.92% from 19.52 to 19.35 levels. Volatility is hovering at its higher zones and needs to cool down for market stability. On Options front, Maximum Call OI is at 18000 then 18500 strike while Maximum Put OI is at 17000 then 17500 strike. Call writing is seen at 17700 then 18000 strike while marginal Put writing is seen at 17300 then 17700 strike. Option data suggests a trading range in between 17000 to 18000 zones while an immediate trading range in between 17300 to 17800 zones due to higher volatility.
Bank Nifty opened gap down by 330 points and recovered from its lows but moved in a zig zag manner throughout the day. It continued to underperform the broader market and closed with losses of 210 points. It formed a small Bullish candle on daily scale but broke its higher lows formation of the last five sessions.
For weekly Bank Nifty, Maximum Put OI is at 39000 then 38000 strike and maximum Call OI is placed at 40000 then 41000 strike. We have seen Call writing in 39500 with unwinding in 42000 while Put writing is witnessed at 39300 with unwinding in 37000 strike. Now it has to cross and hold above 39500 zones, for an up move towards 39750 and 40000 zones whereas supports are placed at 39250 and 39000 zones.
On sectorial front, apart from Auto, Banks and Financial Services, all other sectors traded in the positive territory out of which the most strength was seen in Media, Pharma, IT and FMCG space.
Now, it has to hold above 17550 zones, for an up move towards 17777 and 18000 zones whereas supports is placed at 17550 and 17442 zones. Traders are advised to buy on decline with positive stock specific action in Concor, FSL, Ultracemco, JK Cement, Astral, Dixon, Godrejcp, Adaniports, ABFRL, Ambujacem, ACC, Coal India, Lupin, Grasim, India Cement, SBI Life, Cipla, M&M Fin and PNB while weakness in Indigo, Tatamotors, Bajaj Auto and Mcdowell.
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