The headline indices traded sideways on September 7 amid weak global cues and lack of domestic triggers for the market. As of 11.50 am, the Nifty 50 traded at 19,597.50, down 13 points or 0.07 percent. Bank Nifty was also flat.
Volatility was expected on the expiry day for Nifty 50 weekly contracts. Option data shows, most activity was limited to 19600-19700 strikes, with neutral trades ruling the roost. Maximum call writers were present at 19700.
“For the day, 19500 should act as support as it holds 1.3 crore shares. However, call writers are active at 19600 and 19700 strikes which hold significant OI. Hence, we feel it may trade between the range of 19500 and 19600,” analysts at ICICI Securities said.
Meanwhile, Bank Nifty has been witnessing consolidation since the last few sessions. Yesterday, it witnessed a pullback from the support of 44200 levels. On the option front, once again major option writing happened at the ATM (at the money) strike of 44500 Call and Put. Hence, analysts expect consolidation at current levels.
Sameet Chavan, Head Research, Technical and Derivatives, Angel One, said the overall market breadth remained buoyant but with a narrow difference, signifying a sense of timidity as Nifty inched towards the crucial hurdle zone. Nifty’s sustenance above 20 DEMA could be seen as a positive development, and the in-between hiccups should not divert the undertone of the market.
“The undertone remains upbeat and dips are firmly bought into, affirming market strength. As we proceed, we remain hopeful that globally, there should not be any aberrations to break the momentum. Meanwhile, traders are advised to continue with the ‘Buy on dips’ strategy, keeping the mentioned levels in view. Also, thematic movers are playing well in the current market; hence, one should focus on the same for an outperformance,” he added.
Among individual stocks, traders were seen taking bullish positions in Coal India, Page Industries and L&T. Tata Consumer, JK Cement and Nalco were among those that saw short buildup.
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