In a highly volatile session on May 18, the Nifty ended flat amid mixed a trend on the sectoral front.
The index opened above 16,300, extending the previous day’s gains but failed to hold on to the intraday gains to end marginally lower, forming a small-bodied bearish candle on the daily scale. It closed 19 points, or 0.12 percent, down at 16,240.30.
The index has to hold above 16,250, for an up move towards 16,442 and 16,666, whereas supports shift higher to 16,161 and 16,061 zones, experts said.
“The near-term trends shall remain positively biased in favour of bulls as long as the index sustains above 15,900 levels. In such a scenario, on resumption of the up move, the index can test its 20-day simple moving average, whose value is around 16,635 levels,” Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in, said.
Weakness in the short-term support zone of 16,200–150 levels shall be an opportunity to go long with a stop below 15,900, he said.
The options data suggests a shift in trading range between 16,000 and 16,500 zones.
On the pptions front, Maximum Call OI (Open Interest) is at 17,000 then 16,500 strike, while Maximum Put OI is at 16,000 strike.
Call writing is seen at 16,600 strike, while Put writing is seen at 16,000 then 16,100 strike.
“Volatility cooled from its higher zones but it needs to further come down to 17-18 zones for market stability,” said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.
The VIX was down 1.96 percent from 22.74 to 22.29 levels.
Banking index
The Bank Nifty opened positive but failed to hold above 34,650 and remained consolidative for the most part of the session.
It witnessed some decline and tested intraday low of 34,134 marks. It formed a small-bodied bullish candle on daily scale and closed with losses of around 140 points.
“Now it has to hold above 34,000 zones for an up move towards 34,500 and 34,750 zones, whereas support exists at 33,750 and 33,666 zones,” Taparia said.
Among stocks, positive setup was in Petronet, Marico, Gujarat Gas, Colgate Palmolive, Hindustan Unilever, Divis Labs, Siemens, Godrej Consumer Products and Asian Paints. Weakness was seen in Metropolis, Dr Lalpath Labs, IOC, HPCL, BPCL, DLF, Canara Bank and Tech Mahindra.
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