Dec 17, 2022
Nifty support at 16950-16888, Bank Nifty needs to hold 36000; watch ACC, TVS Motor, MRF stocks for action
By Shivangi Sarda
Nifty index opened negative on Wednesday and moved with weakness in the first half of the session. However, it took support at 16950 zones and recovered from intraday lows but finally closed with losses of around 160 points. It failed to hold above 17100 zones but held on and respected its crucial support levels. It formed a small-bodied Bearish candle with longer lower shadow on daily scale indicating emergence of buying interest at lower zones even after weakness due to Global market.
Bank Nifty needs to hold above 36000
Bank Nifty opened gap down and moved in a consolidative manner. It showed recovery from lower levels in the second half of the day and closed with losses of around 380 points. It formed a small-bodied Bearish candle on daily scale with long longer shadow.
For weekly Bank Nifty, Maximum Put OI is at 36000 then 35000 strike and maximum Call OI is placed at 36500 then 38000 strike. We have seen significant Call writing in 36000 while Put writing is witnessed at 36000 with unwinding at 36500 strike. Now it has to hold above 36000 for an up move towards 36250 and 36500 zones whereas supports are placed at 35750 and 35500 zones.
On the sectoral front, apart from Media space, all the sectors are traded in the negative territory out of which Banking, Financial Services, IT and Pharma space witnessed the most weakness.
Now it has to hold above 17000 zones with some follow up buying interest to extend the move towards 17171 and 17250 zones whereas supports are placed at 16950 and 16888 zones. Traders are advised to be with stock specific action in Hero MotoCorp, MGL, ACC, M&M Finance, MRF, Voltas, Colpal, TVS Motor Company, Bajaj Auto, Biocon, and Eicher Motor while weakness in Bajaj Finance, Mindtree, Indigo, Bajaj Finserv, Muthootfin, Hindpetro, IEX, SBI Life, Coal India, Wipro, Nationalum, UPL, ONGC and BPCL.
(Shivangi Sarda is an Analyst – Equity Derivatives & Technicals, Broking & Distribution at Motilal Oswal Financial Services Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)
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