May 6, 2023
Nifty may head to 17250-17350 if it holds 17050; watch RIL, Airtel, IRCTC, BPCL stocks for action
By Shivangi Sarda
Nifty index opened positive on Wednesday and remained range-bound within a trading range of 100 points for the most part of the day. During the day it witnessed buying interest from 17050 to 17186 marks but the absence of follow up was not allowing it to hold at higher zones. It formed an Inside Bar and a Harami candle on daily scale and closed the day with gains of around 180 points.
Bank Nifty opened positive but relatively underperformed the market. It moved in a zig-zag fashion throughout the session and closed flattish with losses of around 25 points. It formed a small-bodied Bearish candle and an inside Bar on the daily scale.
For weekly Bank Nifty, maximum Put OI is at 36000 then 34500 strike and maximum Call OI is placed at 38000 then 37000 strike. We have seen Call writing in 36500 while Put writing was witnessed at 34500 strike. Now till it holds below 36500 zones, weakness can be seen towards 36000 and 35750 whereas hurdles are placed at 36750 and 37000 zones.
On sectoral front, PSU Banks, Media, Metal and Financial Services stocks traded in the negative territory and the Auto, IT, FMCG and Pharma sectors showed the most strength.
Now for the day point of view, it has to hold above 17050 zones, for an up move towards 17250 and 17350 whereas support can be seen at 16950 and 16800 zones. However, till Nifty doesn’t surpass 17350 zones, overall medium-term setup could find pressure at higher zones. Traders are advised to apply the buy on decline strategy and be with stock specific action in Ambujacem, Ultracemco, BPCL, Reliance Industries, Astral, Ramcocem, UPL, Hindpetro, IOC, Bharti Airtel, BEL, Havells, and AU Bank while weakness in LTI, SAIL, IGL, IRCTC, LT, and Glenmark.
(Shivangi Sarda is an Analyst – Equity Derivatives & Technicals, Broking & Distribution, Motilal Oswal Financial Services Ltd. Views expressed are the author’s own.)
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