Stock Market Today:
The Nifty continued the winning streak for the fourth straight session on March 11, thereby forming bullish candle on daily and weekly scale.
After a negative start, the market remained range-bound throughout the session before closing marginally higher, supported by the pharma, energy and metal stocks.
“Nifty50 appears to be in a consolidation mode, after almost a 1,000-point rally from the intra week low of 15,671 levels which resulted in a strong Bullish Engulfing kind of formation on weekly charts,” said Mazhar Mohammad, Founder & Chief Market Strategist at ChartviewIndia.
Going forward, it remains critical for the index to sustain above the bullish gap zone present between 16,447 –16, 418 levels.
Sustaining above this, bulls will make one more attempt to get past critical hurdles present in the zone of 16,700 –16,800.
Once Nifty manages to close above 16,800, then a breakout on the upsides will be confirmed which may hint at a bottom in place at recent lows of 15,671,” Mazhar Mohammad added.
The volatility index (VIX) fell by 0.92% from 25.58 to 25.34 levels. According to experts, the volatility index needs to cool down to 24-22 zones for the grip of bulls in the market.
On Option front, Maximum Call OI (Open Interest) is at 18,000 then 17,000 strike while Maximum Put OI is at 16,000 then 15,500 strike.
Marginal Call writing is seen at 16,900 then 16,800 strike while marginal Put writing is seen at 16,000 then 15,900 strike. Option data suggests a trading range in between 16,200 to 17,000 zones.
Banking index
Bank Nifty opened negative and after a slight recovery in the initial tick, it remained muted for most part of the day.
It formed a Bullish candle on daily and weekly scale but continued forming lower highs – lower lows from the last five weeks.
“Now it has to hold above 34,500 zones, for an up move towards 34,750 and 35,000 zones whereas support can be seen at 34,000 and 33,750 zones.,” said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.
Among stocks, positive setup was seen in Cipla, HPCL, MCX, Sun Pharma, Jindal Steel, IOC, NMDC, JSW Steel, Trent, Mphasis, Tata Chemiclas, Apollo Hospital, Power Grid, ITC, Titan, Page Industries, PVR and Manappuram, ZEEL and Motherson Sumi.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
