Market

Nifty above 17700 would aim for 18000, Bank Nifty may hit 38000 this week; buy SBI, HDFC, SAIL to pocket gains

By Rajesh Palviya

Nifty began the earlier week on a flat be aware and the shopping for momentum all through the week helped it shut on a powerful be aware. NSE Nifty 50 closed at 17670 with a achieve of 517 factors on a weekly foundation. Nifty is buying and selling above all its essential transferring averages indicating optimistic bias forward. On the weekly chart the index has shaped a large bullish candle and closed above earlier week’s excessive indicating optimistic bias

The chart sample means that if Nifty crosses and sustains above 17700 ranges it would witness shopping for which would lead the index in direction of 17800-18000 ranges. However if index breaks under 17500 stage it would witness promoting which would take the index in direction of 17400-17300. For the week, we count on Nifty to commerce within the vary of 18000-17400 with a optimistic bias. The day by day and weekly energy indicator RSI is transferring upwards and is quoting above its reference line indicating optimistic bias.

Nifty 50 Derivative Outlook

The Nifty rollover stood at 82.12% on Thursday in contrast to 77.22% on the identical day of earlier expiry. The Market large March rollover stood at 88.35% on Thursday as in contrast to 88.99% on the identical day of earlier expiry. Nifty began April expiry with whole OI of 152.93 lakh shares including 36.25 lakh shares. The Nifty rollover is greater than its three months common of 76.92% and better than its six months common of 78.44% as of Friday. The market large rollover is decrease than its three months common of 90.35% and decrease than its six months common of 91.55%.

Nifty futures closed at 17713 on a optimistic be aware with 2.97% lower within the open curiosity indicating Short Covering. Nifty futures closed at a reduction of 37 factors in contrast to yesterday premium of 13 factors. India VIX index is at 18.43 v/s 20.56. Nifty ATM name possibility IV is at the moment 17.18 whereas Nifty ATM Put possibility IV is quoting at 16.49. Index choices PCR is at 1.30 v/s 1.07 & F&O Total PCR is at 0.91. Nifty Put choices OI distribution reveals that 17500 has highest OI focus adopted by 17400 & 17300 which may act as assist for present expiry. Nifty Call strike 17500 adopted by 18000 witnessed important OI focus and may act as resistance for present expiry.

Bank Nifty Outlook

Bank Nifty began the earlier week on a flat be aware and shopping for momentum all through the week led it shut on a powerful be aware. Bank Nifty closed at 37149 with a achieve of 1738 factors on a weekly foundation.On the weekly chart the index has shaped a large bullish candle and closed above earlier week’s excessive indicating optimistic bias. The chart sample means that if Bank Nifty crosses and sustains above 37200 ranges it would witness shopping for which would lead the index in direction of 37800-38300 ranges. However if the index breaks under 36800 stage it would witness promoting which would take the index in direction of 36500-36000. Bank Nifty is buying and selling above 50, 100 and 200 day SMAs, indicating optimistic bias within the quick to medium time period. For the week, we count on Bank Nifty to commerce within the vary of 38000-36200 with optimistic bias.The weekly energy indicator RSI is transferring upwards and is quoting above its reference line indicating optimistic bias.

Bank Nifty Derivative Outlook

Bank Nifty March rollover stood at 91.46% on Thursday as in contrast to 76.23% on the identical day of earlier expiry which is greater than its three months common of 81.76% and better than its six months common of 82.15%. Bank Nifty began April expiry with whole OI of 57.85 lakh shares including 35.83 lakh shares.

Bank Nifty closed at 37202 on optimistic be aware with 22.68% lower in open curiosity indicating Short Covering. Bank Nifty Futures closed at a reduction of 127 factors in contrast to yesterday premium of 62 factors. Bank Nifty Put choices OI distribution reveals that 36000 has highest OI focus adopted by 36500 & 36300 which may act as assist for present expiry. Bank Nifty Call strike 36500 adopted by 36000 witnessed important OI focus and may act as resistance for present expiry.

Sectors and shares to watch this week

We count on Bank Nifty, Financial, Sugar, Capital items, Metal, Real Estate and Automobile shares to present good energy this week . One can take a look at shares like State Bank of India (SBI), Housing Development Finance Corporation (HDFC), Shriram Transport Finance, SAIL, NMDC, L&T, DLF, Bajaj Auto, and Mahindra & Mahindra (M&M).

(Rajesh Palviya, VP – Research (Head Technical & Derivatives), Axis Securities. Views expressed are the writer’s personal.)

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