The market continues to take one step forward and two steps back. After two days of rally, the Nifty was back to its losing ways on January 19 as the index slid about half a percent to below 18,100 in the early trade.
Volatility is expected as its the weekly expiry day. The level of 18,100 has the most new calls being written at, as it has emerged as the new battle zone; 18,200 is also seeing heavy activity.
“We are still long on the index,” said Ankush Bhargava, a Chhattisgarh-based trader. “I believe we have a good base at the 18,000 level and the index has the potential to break out from the last 15-day trading range on the upside.”
Some analysts also see a bullish setup, hence today’s fall could just be a blip. However, they cautioned traders to be ready for volatile moves as we get close to the Union Budget 2023, which is to be presented on Febraury 1.
All sectors were seeing short a buildup, with the intensity highest in infrastructure, power, banking and media names. The short buildup is a bearish sign that takes place when the price of a stock falls along with high open interest and volume.
Torrent Power, Indiabulls Housing Finance, Adani Enterprises, Titan, Voltas and Tata Communication were among the stocks seeing short buildup.
Adani Ports, which was trading lower, saw the largest jump in open interest (OI) at nearly 40 percent from the previous close. Bata India and Adani Enterprises saw OI jumping 11 percent and 8 percent, respectively.
Persistent System traded higher with OI jumping 8 percent, signalling a bullish setting.
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.
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!
