Nifty surges sharply, bulls regain control

Motilal Oswal Wealth Management

Mumbai

Nifty index opened with a massive gap up of around 730 points and crossed 24000 zones with a comeback of the bulls on account of easing geopolitical concerns. It resiliently held on to the higher zones throughout the session and closed near its day’s higher band with gains of around 870 points. It formed a bullish candle on the daily frame and has been making higher highs from the last three sessions and recouped all of its losses of the last three weeks. Now it has to hold above 23800 zones for an up move towards 24400 then 24600 zones while supports have shifted higher to 23800 then 23600 zones.

On option front, Maximum Call OI is at 25000 then 24500 strike while Maximum Put OI is at 23000 then 23900 strike. Call writing is seen at 25000 then 24500 strike while Put writing is seen at 23900 then 24000 strike. Option data suggests a broader trading range in between 23500 to 24500 zones while an immediate range between 23800 to 24300 levels.

S&P BSE Sensex index opened with a strong gap up of over 2500 points after which it traded within a narrow range of around 400 points indicating a consolidation phase at elevated levels. It escalated in the last hour and finally closed with gains of around 2950 points. On the daily chart it formed a bullish candle and closed near its higher band indicating dominance of the bulls. 

Now it has to hold above 77300 for an up move towards 78000 then 78500 while supports have shifted higher to 77000 then 76800 zones.

Bank Nifty index opened gap up by more than 2200 points and gradually extended the momentum towards 55750 zones in the latter part of the session. It formed a bullish candle on daily scale as buying interest was visible for most part of the session. The banking index has seen a recovery of almost 5000 points in the last few sessions and it closed above its 20 DEMA. Now it has to hold above 55500 zones for an up move towards 56250 then 57000 levels while on the downside support is seen at 55250 then 55000 levels.

Nifty future closed positive with gains of 4.04% at 24087 levels. Positive setup seen in Shriram Finance, Hindustan Petroleum, Bandhan Bank, Samvardhna Motherson, Amber, Lodha, PNB Housing, Eicher Motors, Larsen and Toubro, Bajaj Auto, Bharat Forge, LIC, Maruti, IOC and Gail while weakness seen in Coal India, Astral, National Aluminum, Oil India, and Tech Mahindra. 

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Data source: Capitaline