By Shivangi Sarda
Nifty 50 index opened gap-up on Wednesday and relentlessly moved up straight above 17777 zones. It remained range-bound for the most part of the session and closed with decent gains of around 200 points. It formed a Bullish candle on a daily scale and has been forming higher highs from the last four sessions.
Bank Nifty opened gap up and headed towards 39400 zones after surpassing its previous resistance levels. Banking stocks outperformed the broader market and closed with gains of around 830 points. It formed a healthy Bullish candle on a daily scale and has been forming higher lows from the last six sessions.
For weekly Bank Nifty, Maximum Put OI is at 39000 then 38000 strike and maximum Call OI is placed at 40000 then 39500 strike. We have seen minor Call writing in 40500 and unwinding at 42000 while Put writing is witnessed at 39000 strike. Now it has to hold above 39200 zones for an up move towards 39700 and 40000 zones whereas support can be seen at 39000 and 38850 levels.
On the sectoral front, strength could be seen in Banking, Financial Services, Media, Realty, IT and FMCG sectors out of which PSU Banking stocks outperformed the broader market.
Now it has to hold above 17777 zones, for an up-move towards 17900 and 18150 zones whereas support exists at 17650 and 17500 zones. Both the indices are witnessing good up-move and we advise applying buy on decline strategy with stock specific action in Indusind Bank, Can fin Homes, Bajaj Finserv, HCL Technologies, ABFRL, Divis Labs, LIC Housing Finance, Trent, Kotak Bank, and HDFC Life.
(Shivangi Sarda is a Quantitative Analyst, Derivatives and Technical Research, Motilal Oswal Financial Services. Views expressed are the author’s own. Please consult your financial advisor before investing.)