No one could deny the fact that think tanks and market veterans of the Indian economy were betting on the majority win of Chowkidar’s party over the others. The index was continued with its winning spree on the optimism of Modi-led-government one-sided win that thrust the index for a gap up opening at 11,661 levels but the landslide after BJP’s show failed to impress the Indian markets to a low of 11,534 levels. BJP seize 101 and 39 seats while Indian National Congress got 45 and 32 in Maharashtra and Haryana respectively. On indices upfront, almost all sectors closed in red while realty stocks managed to deliver an uptick of 0.92%. Bharti Airtel, Reliance and Eicher Motors were top gainers while Infratel, Grasim and Yes Bank were top losers. USD/INR closed at 71.01 levels, with a marginal gain of 0.09%.
Trading strategy for coming days
No doubt the government has come forward with major stimulus to lift the sentiments of the market participants but a quick push to the overall demand will not be witnessed in the market. We are expecting that the breach of 11,700 levels will keep the bullish momentum, said Nitin Murarka, Senior Equity Analyst, SMC Global Securities.
‘We are expecting a range of 11,550-11,700 for coming days as gradual pick up in auto numbers and FMCG sales could lift these indices. Both indices are likely to bottom-out in coming trading session. Maruti and Bajaj Auto should be the preference of the investors’ said Kkunal Parar, Senior Technical Analyst at Choice Broking.
Trade last session before the opening of Samvat Muhurat 2076
On Friday, Nifty50 futures is likely to remain in a range of 11,479.63 -11,744.37 levels as per the daily volatility of 1.14 levels. Formation of ‘Bearish Engulfing’ candle stick pattern on daily scale, heavy additions in Call writing at 11,600 and bearish crossover from Stochastic oscillator is likely to keep bears alive. A slippage below the psychological support of 11,550 will trigger the formation of ‘Bearish Engulfing’ and activate more sellers to an intraday low of 11,500 and 11,450 levels respectively.
Open interest at the end of the day
Maximum Call open interest (OI) of 35.99 lakh contracts was seen at the 11700-strike price followed by 11600-strike price which 34.11 Lakhs. Highest call writing was seen at strike price of 11600, which were 19.82 lakh contracts.
Maximum Put open interest of 24.22-lakh contract was seen at the 11500-Strike price followed by 11550 levels with 15.69 lakh open contracts. Highest put writing was seen at a strike price of 11500, which were 8.19 lakh contracts. Highest put unwinding was seen at strike price of 11600, which were 11.85 lakh contracts.