Jan 27, 2024
Nifty’s immediate hurdle at 17500, Bank Nifty support at 36000 this F&O expiry week; use declines to buy
By Sameet Chavan
Wednesday’s respite was followed by a decent gap up opening yesterday on the back of positive cues from most of the global peers. As the day progressed, the overall participation from some of the missing heavyweight pockets like IT, Auto and Banking increased to a great extent. As a result, we witnessed a good sustained upward move throughout the day to eventually conclude the penultimate weekly expiry around 17400 by adding another 1.50% to the bulls’ kitty.
As far as Bank Nifty is concerned, we witnessed sheer underperformance during the early part of the week as it kept sulking along with IT space. On Thursday, finally some buying interest was visible in some of the heavyweight names, which is an encouraging sign. Although, we are not completely out of the woods for banking index, we are still hopeful of holding the key support of 36000. The moment it surpasses the 37000 mark, the banking would take the charge from thereon. Apart from this, a lot of individual names are doing well and hence, traders can keep a tab on traders’ favourite counters like Jubilant FoodWorks, Bandhan Bank from a momentum perspective. Also, Polycab India is well poised to give some decent returns. The Metal space looks a bit weak and hence, one should avoid going long for a while.
We have observed long addition in the benchmark index Nifty, while the banking space has seen some short-covering as per the F&O data. On the options front, a substantial pile-up is seen at the 17300-17200 put strikes, indicating it to provide a cushion from any fall. While on the contrary, a considerable OI concentration is built on the 17500 call option, which could be seen as an immediate hurdle for the index Nifty 50.
(Sameet Chavan is a Chief Analyst-Technical and Derivatives at Angel One. Views expressed are the author’s own. Please consult your financial advisor before investing.)
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