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What’s next on the cards for Nifty
Commentary
Major indices gave up their gains due to global jitters. Geopolitical tension between Russia and Ukraine escalated, sending a tremor through global indices. As one of the Fed members spoke about 1% interest rate hike by July that did not go well among the investors community, which added fuel to ongoing choppiness. Sectorally, metals, auto and select pharma stocks did well whereas others failed to provide any major support.
Major Option activity (Main expiry):
Major Call OI change in today’s session: 17200 (21.8 lakh), 17400 (12.9 lakh) and 17500 (31.9 lakh).
Major Put OI change in today’s session: 17000 (20.5 lakh) and 16800 (15.8 lakh).
Outlook:
In the last three sessions, the Nifty has already corrected by almost 600 points from the high and now is hovering near its major Put base of 17000. However, due to a sudden and sharp rise in volatility index by 15% today, there would be a broader trading range in the coming days and finding supports would be difficult due to news based selling. The Put to Call ratio has fallen sharply due to aggressive Call writing in recent days. Due to this, there would be limited upsides in coming days. Also, a reversal of bias now should be expected only above 17400 levels, which has attracted a lot of writing in past few days. We advise remaining cautious in the market at current levels and trading with a proper stop loss.
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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