After starting on a weaker note, the Nifty50 managed to recoup the intraday losses and settled with a marginal loss on March 24.
It remained volatile within a broader trading range ahead of the weekly expiry. It finally closed flat with a negative bias at 17,222 levels near its 50-EMA.
Now, it has to hold above 17,200 levels, for an up move towards 17,350 and 17,500 zones, whereas support exists at 17,100 and 17,000 zones, experts say.
The index formed a bullish candle on daily scale and has been moving in a sideways direction from the last five sessions.
Volatility needs to further cool down to 22-20 zones for market stability and comfort for the bulls as India VIX was down by 3.31% from 24.74 to 23.93 levels, experts added.
Nifty managed to recoup almost half of the losses from the intraday low of 17,090 levels. “Hence, in the next session, if bulls manage to defend 17,090 levels then the trend can remain sideways with positive bias,” said Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia.
However, strength in the index shall not be expected unless it closes above 17,450 levels whereas a close below 17,000 levels can trigger a fresh leg of short term downswing. It looks prudent to remain neutral on the index for the day, Mohammad added.
Option data suggests an immediate trading range in between 17,000 to 17,500 zones. On the Option front, Maximum Call OI (Open Interest) is at 18,000 then 17,500 strike, while Maximum Put OI is at 16,000 then 17,000 strike.
Call writing is seen at 17,200 then 17,500 strike, while Put writing is seen at 17,200 then 17,000 strike.
Bank Nifty opened gap down and underperformed the broader market. It remained relatively in the weaker zone with pressure from the private banks and closed with losses of around 620 points, said Chandan Taparia, Vice President, Analyst-Derivatives at Motilal Oswal Financial Services.
It formed a small bodied Bearish candle on daily scale. Now, it has to hold above 35,500 zones, for an up move towards 35,750 and 36,000 zones whereas support can be seen at 35,250 and 35,000 zones, Taparia added.
On the stock front, the positive setup was seen in ZEEL, Dr Reddy’s, Mindtree, Aurobindo Pharma, Lupin, NMDC, Mphasis, L&T Technology Services, Aditya Birla Fashion & Retail, Glenmark, Tata Power, Coal India, Hindalco, IEX, Jindal Steel, Tech Mahindra, Reliance, Cholamandalam Financial, JSW Steel, Tata Steel, Indian Hotel, NTPC, Tata Chemicals, HCL Tech, TCS and Infosys, while weakness was witnessed in Max Finance Services, Amara Raja Batteries, HDFC, M&M, Marico and PNB.
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