The Nifty reclaimed 18,100 but failed to hold on to the gains amid a late selling push and ended 20 points higher at 18,035.80.on February 16, the weekly F&O expiry day.
A rally in technology, metal and select pharma stocks helped the index but selling in select banking & financial services, auto and FMCG names capped the gains.
The index formed a bearish candle on the daily charts, as the closing was lower than opening level but formed higher highs, higher lows for the third consecutive session, which is a positive sign.
The sentiment will remain positive as long as the index holds the support area of 17,800-17,900, which will take the Nifty to January’s high of 18,200, experts said.
The index traded above the all key moving averages, another supportive indication but volatility and consolidation can’t be ruled out.
“The Nifty remained mostly bearish following a positive start. The trend, however, remains positive, with the critical moving averages sitting above the price on the daily timeframe,” Rupak De, Senior Technical Analyst at LKP Securities said.
The momentum oscillator relative strength index is in a bullish crossover and the trend is likely to remain positive in the near term.
“Resistance on the higher end is visible at 18,150-18,300, whereas on the lower end, support is placed at 17,950,” the market expert said.
On the monthly options front, the maximum Call open interest was at 18,100 strike, followed by 18,000 and 18,500 strikes, with writing at 18,100 strike, then 18,700 strike, the maximum Put open interest was at 18,000 strike, followed by 17,500 strike and 17,800 strike, with Put writing at 18,100 strike then 18,000 strike.
The options data suggests that the Nifty will trade in a broader trading range of 17,700-18,300.
India VIX rose 0.23 percent from 12.86 to 12.89 levels.
Banking index
The Bank Nifty opened 200 points higher at 41,926 but failed to cross the Budget day’s high of 42,015 and drifted lower to hit the day’s low of 41,522.
It ended 100 points lower at 41,631 and formed a bearish candle on the daily scale.
“The Bank Nifty continued to underperform the Nifty as momentum was missing in selective private banks. It has to continue to hold above 41,500 level to make an up move towards 42,000 and 42,250 levels, while on the downside, support is expected at 41,444 then 41,250 levels,” Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.
The broader markets performed better than the benchmarks. The Nifty midcap 100 and smallcap100 indices gained 0.7 percent and 1 percent on positive breadth.
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