Nifty may head to 16500-16350 if it stays below 16888; watch SBI, Titan, DLF for stock-specific action

05 May , 2022 By : monika singh

Nifty index opened positive on Wednesday but failed to hold above 17130 zones and cascaded down throughout the session. Weakness got a tailwind in the second half of the session after the RBI Statement and the index breached its crucial support zones to touch the intraday low of 16623 levels. It formed a strong Bearish candle on the daily scale and closed with losses of 390 points.

India VIX was up by 7.88% from 20.28 to 21.87 levels. Volatility is at highest levels of last 24 trading sessions, it spiked above 22 zones during the day on account of the event and overall higher levels suggest wild swings and discomfort in the market. On Option front, Maximum Call OI is at 17000 then 17500 strike while Maximum Put OI is at 16500 then 16000 strike. Marginal Call writing is seen at 17000 then 17200 strike while Put writing is seen at 16600 then 16500 strike. Options data suggests a wider trading range between 16400 to 17000 zones due to higher volatility.

Bank Nifty opened positive but failed to hold above 36300 zones and slipped down by almost 1200 points from its higher zones. It remained relatively resilient in the first half of the session but was overshadowed by weakness and it closed with losses of 900 points. It formed a strong Bearish candle on daily scale and supports shift lower.

For weekly Bank Nifty, Maximum Put OI is at 35000 then 35500 strike and maximum Call OI is placed at 36500 then 36000 strike. We have seen significant Call writing in 36000 while Put writing is witnessed at 32000 with unwinding at 36000 strike. Now till it holds below 35500 zones, weakness could be seen towards 35250 and 35000 zones whereas resistances are placed at 35750 and 36000 zones.

On sectoral front, all the sectors are traded in the negative territory out of which Media, Realty, Banking, Financial Services and Pharma space witnessed the most weakness.

Now till it holds below 16888 zones, weakness could be seen towards 16500 and 16350 zones whereas hurdles are placed at 17000 and 17071 zones. Traders are advised to stay light with positive stock specific action in Britannia, Petronet, Powergrid and NTPC while weakness in Voltas, Naukri, Apollo Hospital, DLF, Ramco Cement, PEL, National Aluminium, Jubilant Foodworks, Lal Path Labs, Ashokley, Bajaj Finance, Pidilitind, Bank Baroda, Sun TV, Hindalco, Dixon, Can Bank, Berger Paint, SRF, Glenmark, Titan, Divislabs, Dr Reddy’s Laboratories, Axis Bank, Maruti Suzuki India, and State Bank of India.