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Nifty near support zone; advisable to remain positive...
Commentary
Broader indices witnessed a sharp pullback where the Nifty, in the last three sessions, gained almost 1000 points. However, post the gap up opening in today’s session, the Nifty has retraced almost 250 points from its high due to uncertainty over state election results. In the recent past, crude oil prices have cooled off from $130/barrel along with rupee appreciation, which is a positive sign.
Major option activity (main expiry):
Major Call OI change in today’s session: 16500 (3.1 lakh), 16600 (28.8 lakh) and 16700 (57.9 lakh)
Major Put OI change in today’s session: 16500 (38.9 lakh) and 16450 (18.95 lakh).
Outlook:
As the Nifty trades near 16500 levels, on a weekly expiry basis, it is almost flat. Today, despite a sharp sell-off from higher levels, the market breadth remains positive. In the Nifty 50 universe, only five stocks are negative. Even when there was a surge in global volatility, India VIX failed to sustain above 30 levels, which is a positive sign. Now, the Nifty is trading near its sizeable Put base for today’s expiry. We feel there could be some recovery in the last hour of trade. Hence, we remain positive till the index holds above 16400 levels.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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