F&O weekly expiry- Nifty support at 17442, Bank Nifty needs to hold 38250 for up move; buy IRCTC, ICICI Bank

F&O weekly expiry: Nifty support at 17442, Bank Nifty needs to hold 38250 for up move; buy IRCTC, ICICI Bank

By Shivangi Sarda

The NSE Nifty 50 index opened positive but faced some pressure at higher zones and slipped lower in the initial tick on Wednesday. However, it took support at 17442 marks and again picked up during the day to finally close with gains of around 10 points. It formed a small bodied candle on a daily scale with long lower shadow indicating buying was intact at lower zones. India VIX was up by 1.49% from 19.30 to 19.58 levels. Volatility has been inching higher giving some discomfort to the bulls and its needs to come down for a smoother market ride. On Option front, Maximum Call OI is at 18000 then 17500 strike while Maximum Put OI is at 16500 then 17000 strike. Marginal Call writing is seen at 17500 then 17800 strike while Put writing is seen at 17500 then 17400 strike. Option data suggests an immediate trading range between 17300 to 17700 zones while a broader trading range in between 17000 to 18000 zones.

Bank Nifty opened positive and moved in a consolidated manner in between 38150 to 38400 levels. It moved in an arrangement of 250 points and managed to hold above 38150 zones. It formed a Doji sort of candle and closed with marginal gains of around 50 points. It has been making higher lows from the last seven weeks and supports are gradually shifting higher.

For weekly Bank Nifty, Maximum Put OI is at 38000 then 37000 strike and maximum Call OI is placed at 39000 then 38500 strike. We have seen Call writing in 39000 while Put writing is witnessed at 38300 strike. Now it has to hold above 38250 zones for an up move towards 38500 and 38750 zones whereas supports are placed at 38000 and 37777 zones.

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On the sectorial front, Realty, IT, Media, FMCG and PSU Banking stocks traded in the negative territory whereas all the other sectors were in green with most strength seen in Metals, Private Banks, Auto and Private Banks.

Now it has to hold above 17500 zones for an up move towards 17650 and 17777 zones whereas support is intact at 17442 and 17350 zones. Traders are advised to stay light with positive stock specific action in CUB, IGL, Hindalco, Polycab, Coromandel, IRCTC, Coal India, BEL, UPL, Tatasteel, ICICI Bank, Tatamotors and LT while weakness in MRF, Indus Tower, Marico, MFSL, ONGC, GAIL and SBIN.

(Shivangi Sarda, Analyst – Equity Derivatives & Technicals, Broking & Distribution, Motilal Oswal Financial Services. Views expressed are the author’s own.)