Technical views on the F&O market by Rupak De, Senior Technical Analyst, LKP Securities. De suggests buying IDBI Bank and Oberoi Realty.
The domestic benchmark indices, the Sensex and the Nifty 50, started Monday’s trading session on a high note, driven by a global market surge. The Sensex rose by 346.93 points, or 0.43%, reaching 81,679.65 points. Similarly, the Nifty 50 index began at 24,943.30, gaining 108.45 points, or 0.44%.
All NSE indices, including the Nifty Midcap, Nifty Small Cap, and Nifty Next 50, opened higher in the broad market. The sector indices also saw an upward trend, marking a positive start to the new week.
Top losses on the Nifty 50 list were Dr. Reddy’s Laboratories, Tata Consumer Products, Power Grid, Bharti Airtel, and NTPC. Meanwhile, BPCL, ICICI Bank, IndusInd Bank, and SBI were among the top gainers.
According to Ruchit Jain, Lead Research Analyst at 5paisa, “the August series for F&O started with 57% long positions by FIIs and around 50% long positions by the client section, creating room for fresh long positions at the start of the new series. With the uptrend resuming, we could see continued momentum where the next resistances will be seen around the retracement levels of this correction placed around 25,065 and 25,340. On the flipside, 24,550-24,350 will be seen as the immediate support zone on any declines.”
Bank Nifty Analysis
For Bank Nifty, the last expiry date was Wednesday, July 24. “On the daily chart of Bank Nifty, an outside day pattern has formed, suggesting a possibility of price expansion. Additionally, the index has reclaimed the 50-period exponential moving average. Over the short term, the trend might witness a bullish reversal. Going forward, a move above 51,500 might induce a decent rally towards 52,500. On the lower end, support is placed at 51,000,” De explained.
Open Interest Analysis
Significant additions were observed in the open interest at the 51,200 PUT and 50,800 PUT, while CALL writers added substantial positions at the 52,200 and 51,300 strikes on the first day of the current expiry. Maximum CALL open interest was seen at the 52,000 strike, whereas maximum PUT open interest was noted at 51,000, indicating a broader range for the market. The open interest positions on both the CALL and PUT sides are relatively similar for the July expiry.
Nifty 50 Analysis
For Nifty 50, the last expiry date was Thursday, July 25. “The Nifty 50 has experienced a downward consolidation breakout on the daily chart, suggesting a rise in optimism. A sustained trade above the very short-term
