F&O Manual | Indices gain after yesterday’s slump, Nifty near 22,090 resistance

At 12:44 hrs IST, the Sensex was up 128.76 points or 0.18 percent at 72,532.93, and the Nifty was up 66.30 points or 0.30 percent at 22,023.80. About 1837 shares advanced, 1327 shares declined, and 104 shares unchanged.

Indian benchmark indices gained amid volatility on May 10, and were trading up about 0.3 percent around noon. NSE Nifty 50 traded above 22,000, reclaiming the crucial level after the previous session’s loss. Sensex was up about 200 points, though off the day’s high.

Nifty options data suggests heavy call writing at 22,350. Analysts said that the range for the coming few sessions could be between 21,820 on the downside and 22,090 on the upside.

Bars in red indicate the change in open interest (OI) of call writers, while the green bars show the change in OI of put writers

Significant call writing was seen across 22,000-22,100 strikes, while put writing was seen in 21,900-21,800 strikes, said Sudeep Shah, DVP and Head of technical and derivative research at SBI Securities.

SBI Securities: “Any sustainable move below the level of 21,820 will lead to further selling pressure in the index. In that case, it is likely to test the level of 21,600, followed by 21,500 in the short term. On the upside, the zone of 22,070-22,090 will act as an immediate hurdle for the index, said Shah.

Also read: F&O Manual | Indices gain after yesterday’s slump, Nifty near 22,090 resistance

JM Financial: “Technically, the indices are in oversold zone on hourly charts and hence a minor pullback rally of 150-200 points cannot be ruled out. The support for the Nifty is now seen at 21,950 and then 21,700-800 levels. On the higher side, the immediate resistance zone for Nifty is at 22,200-22,250 levels and then at 22,500,” said Tejas Shah, Vice president-Technical research at JM Financial.

Bank Nifty technical view

JM Financial: Bank Nifty is trading around a make or break support zone of 47,500-47,700 (50 Day EMA). Any decisive close below the same in today’s trading session can trigger 1-2 percent fall in Bank Nifty, or else there are high chances of a bounceback from the current levels.

On the downside, the support zone lies at 47,500-47,700 and then at 46,500-46,600. Resistance is seen at 48,200-48,300 / 49,000-49,100. Overall, the bears should continue to have an upper hand going forward,” said Tejas Shah.

Among individual stocks, long build up is observed in Escorts, Apollotyre and BPCL. While short build up is seen in Polycab, INFY and BSOFT.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.