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Nifty near support zone; advisable to remain positive...

ICICI Securities 10 Mar 2022

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.

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