Another spectacular rally in the Nifty as it continues the uptrend and touched a high of 17,985 and close around 17,855. The Nifty facing the hurdle around 18,000 mark.
The Nifty future during this week ranged from 17,985 to 17,410, ending the week by gaining around 2.56 percent. Private banks and NBFCs contributed the most to this rally and the Nifty witnessed long built-upon OI (open interest) front in the week gone by.
The Bank Nifty, on the other hand, Bank Nifty outperformed the benchmark as it gained more the 6 percent over the last week. Bank Nifty traded in the broader range of 38,250 – 35,650. Overall, Bank Nifty ended the week with a gain of more than approximately 2200+ points last week. Bank Nifty also witnessed short covering OI front in the week gone by.
Further diving into the Nifty upcoming weekly expiry CE writers showing aggressions by building more position compared to CE writers. The Nifty’s immediate resistance stands at 18,000 where nearly 44 lakh shares have been added, followed by 18,500 levels with 34 lakh shares.
On the lower side, the immediate support level is at 17,800 where nearly 27 lakh shares have been added, followed by 17,500 with an addition of 41 lakh shares.
Looking at the Bank Nifty upcoming weekly expiry data, on the upper side, the immediate and vital resistance stands at 38,000 (18 lakh shares). Whereas, on the downside, immediate support level stand at 37,500 (9 lakh shares) followed by 37,000 (11 lakh shares) as the vital support levels.
India VIX, fear gauge, increased by 8 percent from 16.22 to 17.57 over the week. India VIX is trading near the lowest level of pre-COVID crash. Cool off in the IV has given relaxation to market. Further, any downticks in India VIX can push the upwards momentum in the Nifty.
Looking at the sentimental indicator, Nifty OI PCR for the week has decreased from 1.412 to 1.258. Bank Nifty OIPCR over the week decreased from 0.9785 to 0.834 compared to last Friday. Overall, the data indicates more of CE writers over PE writers in the Nifty.
Let’s take a look at the weekly contribution of sectors to the Nifty. Most of the sectoral indices have positively contributed such as PVTB, NBFC and OIL has collectively contributed nearly 370 in the Nifty 445 points gain. Whereas IT and Power contributed on the negative side.
A look into the top gainer and loser stocks of the week in the F&O segment shows India Cements at the top with over 24.6 percent gain, followed by AU Small Finance Bank with 17.7 percent, and Balrampur Chini with 13.7 percent. Persistent led the losing squad with over 7.10 percent loss, Cadila Healthcare with 6.6 percent, and Abbott India with 3.1 percent.
Considering the bullish momentum along, upcoming week can be approach with a low-risk strategy like modified call butterfly in Nifty.
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