The key market indices began the day on a positive note, buoyed by favourable global cues. With the exception of the oil and gas sector, all sectoral indices traded in the green by noon on August 30.
At 11am, the Sensex was up 362.28 points or 0.56 percent at 65,438.10, and the Nifty was up 100.30 points or 0.52 percent at 19,443. About 2,137 shares advanced, 843 shares declined, and 109 shares unchanged.
Bars reflect changes in open interest (OI) during the day. The red bars show call option OI and the green put option OI
As per options data, put writers are dominant with strong support at 19,400 strike.
In line with a fundamental tenet of technical analysis, periods of low momentum often pave the way for subsequent phases of high momentum. It appears that traders are eagerly awaiting a catalyst that will trigger this surge in momentum. As the monthly expiry approaches, there is a high likelihood of witnessing a pronounced trending movement in the near future.
Brokerage firm Angel One anticipates an impending breakout from the recent congestion, with a favorable bias towards an upward trajectory.
"However, to attain confirmation, prices must sustain a closing above the 19,400 mark. Once this crucial threshold is surmounted, further levels at 19,600 and beyond could reasonably be anticipated in the near future. Conversely, the level of 19,200 continues to serve as a pivotal support. A breach of this level might potentially usher in more weakness, thereby pushing prices down to 19000 and even 18800 in the short term," Angel One said.
Given the prevailing bullish sentiment, any extended declines in prices towards these levels should be interpreted as strategic buying opportunities.
Follow our live blog for all market action
Among individual stocks, Naukri, HindCopper and Tata Steel saw a bullish setup, while HindPetro, Indigo and BPCL saw a short build-up.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
