Market

F&O expiry outlook: Nifty remains bearish, may test 16200 on downside; resistance placed at 16700

Going ahead, the market is predicted to stay unsure with its wild strikes till the geopolitical considerations fade away

By Sameet Chavan

Our home market began the day on an optimistic observe with a spot up, taking cues from the optimistic Asian friends. However, the market refrained at increased ranges as bears reciprocated immediately, and regularly it began correcting because the day progressed. The benchmark index concluded the day in purple by shedding 0.65 % to settle a tad beneath the 16500 mark.

The benchmark index appears tentative amid the continued whipsaw actions from the previous couple of buying and selling periods. The soared volatility is the first concern for the individuals that may very well be sensed by the sample motion. The undertone stays on the bearish facet, and any aberration on the worldwide entrance might irritate the bears. In our sense, the extra it consolidates round 16400-16500 and fails to maintain at increased ranges, it will increase the chance of triggering yet one more spherical of dump to check 16200 or might even slide beneath that as nicely. On the opposite, the rapid resistance is positioned close to the 16700 – 16800 odd zone which coincides with the 200 DEMA, adopted by a cluster of provide zones in direction of the 17000 mark.

Going ahead, the market is predicted to stay unsure with its wild strikes till the geopolitical considerations fade away. Hence, it’s advisable to remain gentle and keep away from aggressive bets in these market circumstances.

As far as F&O exercise is anxious, we noticed addition of contemporary shorts in Nifty in addition to Financial institutionNifty. Stronger arms continued their relentless promoting in equities; in addition they added bearish bets in index and inventory futures. In choices phase, build-up was scattered within the vary 16500-17500 name choices. Meanwhile, on the put facet ATM strike 16500 added contemporary positions.

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(Sameet Chavan is a Chief Analyst-Technical and Derivatives at Angel One. Views expressed are the writer’s personal. Please seek the advice of your monetary advisor earlier than investing.)



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