Nifty traded higher with positive contributions from Infosys, TCS, ICICI Bank, HCL Technologies and Tech Mahindra. As of 11:59 am, Nifty was up by 57 points or 0.30 percent at 19,471.55. The Bank Nifty also traded higher at 44,676.50, up by 11.45 points or 0.026 percent.
The bar graph reflects the change in OI (Open Interest) during the day. Red bars represent call option OI, while green bars represent put option OI.
According to options data, there seems to be a tug-of-war at the 19,500 level. On the technical front, indicators still indicate overbought sentiment, but the bulls are holding strong. Raj Deepak Singh, Derivatives Research Head at ICICI Securities, stated, "Today, the Nifty has been supported by heavyweight tech stocks, contributing almost 50 points to the gains. The 19,530 level remains a crucial hurdle, while the immediate support is at 19,440."
Sameet Chavan, Head of Research -- Technical and Derivatives at Angel One, believes that a decisive close above 19,500 is necessary to trigger the next leg of the rally towards 19,600-19,650. He said, "We observed strong traction in the IT sector after the quarterly outcomes of some heavyweight companies, while PSU Banks had a negative impact on the session. As we move forward, the market is expected to remain volatile due to the start of the quarterly earnings season."
He advises traders to continue following a stock-centric approach to identify better trading opportunities.
The bar graph reflects the change in OI (Open Interest) during the day. Red bars represent call option OI, while green bars represent put option OI.
Bank Nifty:
The Bank Nifty index continues to show a consolidative bearish sentiment, with call writers dominating the day. Strong support can be seen at the 44,000 level, while crucial resistance is at 44,800.
Jyoti Bhudia, Technical and Derivatives Analyst, believes that there is sideways momentum and does not expect a drastic move. She said, "The daily chart of the Bank Nifty candle is between yesterday's candle, and neither the high or low of the previous day is broken. If it breaks yesterday's high, we can expect it to reach 45,300 levels by expiry, but if it breaks yesterday's low, it can move towards 44,000 levels by expiry"
Among individual stocks, there was a long buildup seen in MPhasis, Glenmark, TCS and Infosys. Meanwhile, a short buildup was seen in M&MFin, Seimens and NTPC.
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