Move above 17300 on weekly settlement seems difficult
In the last four to five sessions, the Nifty has been trading in a broader range with stock specific action. On the back of sectoral rotation, banking stocks saw retracement from higher levels whereas money flow seems to be coming in the technology space. Despite global uncertainty, volatility of the US fell significantly in the last couple of days whereas India is already outperforming, which is a positive sign.
Major option activity (main expiry):
Major Call OI change in today’s session: 17200 (40.2 lakh), 17300 (39.8 lakh) and 17350 (21.4 lakh)
Major Put OI change in today’s session: 17200 (31.5 lakh) and 17100 (42.6 lakh).
Today, premiums of Nifty March future rose sharply. Now, it is almost 48 points compared to the previous close of 27. Today premium rose when there was a move in Nifty future towards 17300. Hence, we feel intraday long positions are stuck at higher levels. Further, there were huge Call writing blocks in OTM strikes, which should limit upsides. We feel fresh moves are expected only above 17300 levels whereas on downsides, major intraday support is near 17100, which has highest OI addition in today’s session. Overall, no major moves are expected in the second half. Nifty March future should head towards 17300 with expiry likely to be near 17300.
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