The latest options data for NSE suggests that there will be range-bound trading for the coming week. The support level remains at 18,200PE, while the resistance level increased slightly to 18,300CE. The 18,300 strike has the highest Call OI followed by 18,500/18,800/18,600/18,700/18,400 strikes. On the Put side, maximum Put OI is seen at 18,200 followed by 18,300/18,000/18,100/17,900 strikes. Analysts predict stability around 18150-18200 levels as NSE Nifty may gradually move towards 18,500 points.
FIIs have been closing their short positions since mid-March, but a marginal increase in shorts was experienced last week along with a sharp decline in Nifty premium. Dhirender Singh Bisht, associate vice-president (technical research-equity) at SMC Global Securities Ltd, said that the 18,200 Put strike will act as a strong support level for Nifty moving forward.
BSE Sensex closed the week ended May 12, 2023, almost flat on a negative note. NSE Nifty ended the week with a small addition of 245.80 points or 1.36 per cent from a week ago. Bisht suggests that both indices are likely to remain bullish in upcoming sessions with volatility likely to grip the markets.
India VIX rose 2.74 per cent to 12.85 level, and positive bias is likely to continue till it holds below 13 level. Short-term profit booking leg to be seen if India VIX moves above 13 level once again. NSE’s banking index closed the week at 43,793.55 points, a net recovery of 1,132.35 points or 2.65 per cent from the previous week’s closing of 42,661.20 points.
