The Nifty closed with marginal gains on May 25 amid volatility, forming a bearish candle on the daily scale with a long lower shadow.
“Considering the fact that index remained volatile ahead of expiry, traders are advised to refrain from shorting but intraday traders with high risk can go long above 15,300 for modest targets of 15,400 levels,” said Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory, Chartviewindia.
“Last two days of price action is pointing towards some sort of discomfort among the bulls at higher levels, as the market is heading for monthly expiry in next two trading sessions. Hence, the index may remain volatile and choppy ahead of the expiry and in the next trading session if this counter slips below 15147 levels, then it may come under intraday selling pressure,” he said.
If the Nifty manages to get past 15,300, decks will be cleared for a new life-time high in the next three sessions. A close below 15,147, may drag the index towards psychological support of 15,000, he added.
Option data suggests a trading range between 15,000 and 15,400 zone.
On the options front, Maximum Put OI (open interest) is at 15,000 followed by 14,500 strike, while maximum Call OI is at 15,500 followed by 15,300 strike. Call writing is seen at 15,300 and 15,350 strike ,while Put writing is seen at 15,200 then 15,100 strike.
The Bank Nifty opened positive but could not cross its previous day’s highs and moved in a range throughout the day.
Banking stocks underperformed the broader market and the index closed with losses of around 280 points. It formed a bearish candle on the daily scale and negated its higher highs-higher lows formation of the last two sessions.
“Now it has to hold above 34,500 zones to witness an up move towards 35,000 and 35,250 zone, while on the downside, support exists at 34,250 and 34,000 levels,” said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.
On stocks front, bullish setup was seen in Concor, Colgate Palmolive, Asian Paints, Titan, Balkrishna Industries, Eicher Motors, Page Industries, MFSL, BHEL, UBL, Indigo, Jubilant Foodworks, TCS, HCL Tech and Tech Mahindra. Weakness was seen in Amara Raja Batteries, Cummins India, M&M Financials, Canara Bank, Havells and Coal India, he added
