Overall, it was another volatile session for the index, which moved within a range of 15,700 and 15,900 for the fourth straight session and formed a candlestick pattern resembling a Doji on the daily charts. For the index to have a clear direction, it must break out of this range on either side, according to experts.
In the first hour of trading, the Nifty50 struggled to hold near the 20-day simple moving average (15,870), and it remained erratic for the remainder of the session before closing with modest losses on June 30, which was the monthly expiry day for June futures and options contracts.
Overall, it was another volatile session for the index, which moved within a range of 15,700 and 15,900 for the fourth straight session and formed a candlestick pattern resembling a Doji on the daily charts. For the index to have a clear direction, it must break out of this range on either side, according to experts.
The volatility decreased somewhat to 21.84 levels, down 0.27 percent, but it is still above the important 20 threshold, which could favour bears in the future and cause trouble for bulls.
Additionally, the selling pressure persisted in a wider area. Both the Nifty Midcap 100 index and the Smallcap 100 index decreased by 0.8 percent.
The Nifty50, which started the day at 15,774 and closed with a 19-point loss, reached an intraday high of 15,890 in the morning and a low of 15,729 in late session.
"Price activity over the previous four sessions seems to have been consolidated between 15,900 and 15,700 levels. Therefore, unless the index breaks out of current range, a directional move is unlikely to materialise "Founder and Chief Market Strategist of Chartviewindia, Mazhar Mohammad, stated.
According to the market expert, if the index closes above 15,927, then the strength can be anticipated to last up to 16,200, but if it closes below 15,687, then the index might weaken with a first target of 15,400.
As a result, he suggested waiting for a breach of significant consolidation levels before entering a trade in the direction of a breakout.
The new series is just getting started, thus there are many far strikes with scattered Option data. Maximum open interest for calls was at 17,000 strike, followed by 16,500 strike, and for puts, it was at 15,000 strike, then 15,500 strike.
A marginal Put writing was observed at 15,500 strike and 15700 strike, while a call writing was observed at 16,000 strike and 16,500 strike. According to this Option data, the Nifty may trade in a wider range in the ensuing sessions, between 15,300 and 16,300 levels.
Bank Nifty opened negatively at 33,181, but was able to maintain their opening levels and remained positive for most of the day. The index closed 155 points at 33,425, surpassing the wider space and forming a bullish candle on the daily chart.
"The Bank Index must exceed the 33,333 level in order to rise towards the 33,750 and 34,000 levels while deploying support at the 33,000 and 32,750 levels," said Chandan Taparia | Motilal Oswal Financial Services Analyst Derivatives. Stated.
Among the expiring F & O stocks, experts have seen a positive lineup at TVS Motor, HDFC AMC, NTPC, REC, Cummins India, Reliance Industries, Ashok Leyland, Shriram Transport Finance, PVR, L & T and ITC. Said that.
However, there are weaknesses in Indiabulls Housing Finance, IRCTC, IndiaMART InterMESH, RBL Bank, Strides Pharma Science, NALCO, Coforge, Indian Energy Exchange, L & T Infotech, Vedanta, Container Corporation, Mindtree, Bandhan Bank, Tata Consumer Products and Bajaj Finance. I did. , Canara Bank, L & T Finance Holdings, Deepak Nitrite, BHEL, Tata Power, Indraprastha Gas, Dabur, Bajak Finance, IndusInd Bank, PNB