IGI Logo

Nifty: Positive bias should take Nifty towards 16100

* For a major part of the June series, the Nifty remained in a range and finally ended the June expiry marginally below its highest Call base of 15800. Late buying in banking and IT keep the momentum intact whereas Reliance Industries reverted sharply from its Call base, which kept the index move in check

* Nifty rollover for the July series was at 84.61%. Roll spread in the Nifty declined towards settlement amid closure of open interest. FIIs continued to remain positive and were net buyers in the June series suggesting the positive bias would remain intact

* On the sectoral front, marginally high rollovers was observed in metals and select auto stocks. We feel stocks from the auto and metal space are likely to do well in coming days

* Despite all the volatility, IVs continued to remain choppy and no major hedging positions were formed, which is pointing towards more upsides in coming days. For the July series, highest Call base is placed at 16000 followed by 16200. However, in case of any profit booking, June series major support of 15600 should provide cushion

Bank Nifty: Outperformance in banking stocks should push index towards 36500

* The Bank Nifty rallied almost 1500 points in the expiry week and commenced the new series on an optimistic note. Like last month, most private banks started the new series near their Call bases but most of them managed to move higher on Friday

* We feel short covering should trigger in private banks, which should push the Bank Nifty towards 36500. For a major part of the June series, Bank Nifty remained laggard and from expiry to expiry bases, apart from HDFC bank, most of them ended negative

* We feel the July series should be the month for banking and outperformance could be possible from the banking space, which should push the Nifty towards 16200

* No sizeable OI additions were seen on the Call side. However, Put writing block of almost 15 lakh shares was visible in 35000 strike for the coming weekly expiry. This level should act as a major support for the coming weekly expiry

To Read Complete Report & Disclaimer Click Here

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer