Below are Views On 14600-14700 to act as a strong hurdle now By Mrs. Sneha Seth (Derivatives Analyst, Angel Broking)
“We had a cheerful start for the day tad above 14600 mark. However, it was merely a formality as we witnessed decent profit booking coming in around 14650. The Nifty plunged below 14450 mark with an ease but some recovery in the end led flat closing for the day. The banking index finally clocked fresh record high in the early morning trade but selling in broader market led a sharp fall below 32200 ( from the life time highs of 32683.50). In the final hour, we witnessed a smart pull back to recoup all the losses to eventually conclude the volatile session with the gains of 0.73%.
In derivatives segment, we hardly saw any open interest addition in both the indices. The call strikes of 14600 and 14700 added huge positions, which suggests 14600-14700 to act as a strong hurdle. On the flip side, decent build-up was seen in 14500 strike. Maximum open interest concentration for tomorrow’s weekly expiry is placed at 14600 call and 14500 put strikes. We have been mentioning that the market looks a bit overbought and we also saw decent profit booking in today’s trade. Considering today’s development in Nifty, we expect further selling going ahead. Hence, traders are advised avoiding any aggressive directional bets in index and prefer trading in individual counters with is giving trading opportunity on both the sides.”
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