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What’s next on the cards for Nifty

ICICI Securities 14 Feb 2022

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.

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