The Nifty ended marginally lower after another day of choppy trade on February 17, amid mixed trend in sectoral indices that saw the index stay just above the psychologically important 17,300 level.
The Nifty50 seems to be struggling around its 20-day simple moving average, which it tested but closed below for the second session in a row with a bearish candle, Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia, said. The Nifty closed 17.60 points, or 0.10 percent, lower at 17,304.60.
Strength should not be expected till the Nifty closes above 17,490. “In that scenario, strength can expand towards 17630,” Mohammad said.
“Contrary to this if the index slips below 17235 levels, some selling pressure on an intraday basis can be expected with eventual targets towards 17070 levels,” he said.
For the time, it would be prudent to remain neutral on the long side, he added.
Higher volatility suggests a roller coaster ride in the market India VIX, which indicates expected volatility, moved up 6.87 percent from 20.59 to 22 levels.
The options data suggests a trading range of 17,000 to 17,500.
On the options front, maximum Call OI is at 18,000 then 17,500 strike, while maximum Put OI is at 17,000 then 16,500 strike. Call writing was seen at 17,500 then 18,000 strike, while Put writing is seen at deep OT M strikes and 17,300.
The banking index
The Bank Nifty opened positive above 38,000 but nosedived to 37,400. It underperformed the market and closed near the day’s low, down 420 points.
It formed a bearish candle on the daily scale and hovered near its key moving averages from the last four sessions.
Till it remains below 37,750, weakness can extend to 37,250 and 37,000, while hurdles exist at 38,000 and 38,250, said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.
Positive setup saw in Shriram Transport Finance Corporation, Tata Consumer, Cummins India, Siemens, Indian Hotel, ONGC, HDFC, Reliance, Voltas, Marico, Cholamandalam Investment and Finance, TVS Motor, Eicher Motor, HUL and Bajaj Auto.
Weakness was seen in Muthoot Finance, APL Ltd, Manappuram, RBL Bank, Bharat Forge, LIC Housing, UltraTech Cement, Glenmark, Aurobindo Pharma, ICICI Bank, Canara Bank, Coforge, Ipca Labs, MGL, IGL, Motherson Sumi and PNB.
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