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F&O Manual| Indices trade negative; Nifty breaches support level of 22,200

09 May , 2024   By : Debdeep Gupta


F&O Manual| Indices trade negative; Nifty breaches support level of 22,200

Indian benchmark indices fell amid volatility on May 9, ahead of the weekly expiry today. In the morning trade, the Nifty was down 160 points to 22,140. Options data suggests heavy call writing at 22,400 forming strong resistance for the day. Meaningful call writing is witnessed across 22,400-22,500 strikes.


Analysts said the near-term support for the Nifty was at 22,200-22,250. Nifty has already fallen below these levels, and now the next support is placed at 22,000. Analysts see resistance for the index at 22,350, and then in the 22,500-22,550 zone.


Options data suggests heavy call writing at 22,400 levels forming strong resistance for the day. Meaningful call writing is witnessed across 22,400-22,500 strikes.


JM Financial: Nifty is trading around a make-or-break support zone of 22,200-22,250. A move of 200-250 points can be expected on either side from here. The indicators are in the oversold zone on hourly charts and hence there is a strong possibility of recovery from the support levels in the coming days.


Prabhudas Lilladher: The index has 22,000 as the major support. A decisive breach above 22,400 is necessary to improve the sentiment.


Bank Nifty levels


JM Financial: "The positive key takeaway for Bank nifty is that it is holding above 50 Day Exponential moving average, which is currently placed at around 47,700 Mark. On the downside, the support zone lies at 47,600-700 / 46,500-600 while the resistance is seen at 48,200-300 / 49,000-100," said Tejas Shah, Vice president of technical research.


Sensex technical view


Prabhudas Lilladher: Sensex closed below 20 DMA (in the previous session). With a break below 73,000 the index can slide further till 72,700 -- the lower end of the rising trend line pattern, with bias turning weak. The support for the day is seen at 73,000/22,150 (Sensex/Nifty), while the resistance is seen at 74,000/22,450.


Among individual stocks, the long build-up is observed in Heromotoco, Eichermotors, and Bharatforg. While short build-up is seen in Muthootfin, L&T, and Voltas.

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