Nifty support lies in 17300-17500 range; focus more on stock-specific action, says analyst

Nifty support lies in 17300-17500 range; focus more on stock-specific action, says analyst

By Sameet Chavan

The Indian equity market has snapped its winning streak of three consecutive days and witnessed decent profit booking at higher levels. The mixed global cues played a vital role in the session’s correction that got aggravated in the latter half, where the Nifty 50 index tested intraday low of 17511 level till the last minute and finally settled the day with a loss of 1.24 per cent at the 17560 level.

Now, let’s take a quick glance at F&O activities. Recently, we observed some longs in both the index but the quantum wasn’t significant. Yesterday, market corrected due to short formation. The put writers of 17600-17800 ran to cover their positions seeing the sell-off. On the opposite side, 17600 and 17700 calls added massive shorts. Stronger hands continue being net sellers in equities, index and stock futures segment. Their Index futures ‘Long Short Ratio’ stands at 35%, indicating they are short heavy.

Investors remained upbeat in the auto space with heavyweights showcasing some significant up move, whereas the Banking and IT sector witnessed some cool off post strong performance since the last couple of trading sessions. There could be some thematic changes that could be seen soon. Hence, it is advised to focus more on the stock-specific front rather than broader indices.

(Sameet Chavan is a Chief Analyst-Technical and Derivatives at Angel One. Views expressed are the author’s own. Please consult your financial advisor before investing.)