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  • 08 Nov 2021
  • ICICIdirect Research

INDUSIND BANK ACTS AS SPOILSPORT BUT OVERALL SET-UP FOR BANK NIFTY REMAINS POSITIVE

INDUSINDBK - 1464 Change: 20.70 (1.43 %)

Commentary:The Bank Nifty has relatively underperformed today as it fell almost 400 points vs. Nifty gains of 100 points. IndusInd Bank played spoilsport for the same, falling nearly 11% due to allegation of evergreening of micro finance loans though the management has denied the same. This was coupled by a muted performance in other heavyweights. However, the Bank Nifty has approached its support zone and further price cuts remain a buying opportunity.

Major Option activity (Weekly):

Major Call OI change in today’s session: 39300 (10.2 lakh), 39400 (7.2 lakh) and 39500 (12.4 lakh).

Major Put OI change in today’s session: 39000 (6.7 lakh) and 38500 (5.9 lakh).

Outlook:

Aggressive additions in Bank Nifty Calls are likely to keep its move in check for a couple of sessions. However, overall set-up of other private banks is positive whereas supportive actions should continue from other PSU banks. Major Put OI for the coming weekly expiry is placed at 38500 strike, which is also near the low of 3000 points reversal in last week of October. We feel one or two days of jitters would be there but 38500 remains the strong support zone. From here, apart from PSU banks, Kotak Bank along with HDFC Bank are likely to provide supportive action.