Nifty above 17,900; banks outperform again!
Market update at 3.30 PM: The rally seems to be never-ending as Nifty gained about 0.67 per cent while Sensex surged around 325 points. However, the broader markets ended mixed.
The top performers today were the banking indices, which surged over 2.5 per cent while Nifty IT was down today by nearly 2 per cent. Bajaj twins were the top gainers among Nifty 50 pack while IT stocks such as Tech Mahindra, Infosys, and HCL Tech were the top losers today.
Aggressive put option addition has been seen at 17,800 while some call option contracts have been closed at 18,000. The PCR for this expiry is as high as 1.5, which shows extreme bullishness among the market players.
Market update at 12.30 PM: Nifty is trading near the day’s high and is up by nearly half a per cent. Sensex has gained over 200 points.
After trading almost flat for the initial two hours, the indices have picked up the pace on the higher side and Nifty is seen approaching the 17,900-resistance.
The banking and the metal indices are up by over 1.5 per cent while the IT index has underperformed severely as it slipped nearly 2 per cent.
Put options are aggressively written by the market participants and it is expected that the market will continue the momentum towards the higher side. However, 18,000 still holds the maximum open interest, and crossing above this level will propel the market even higher.
Market update at 10 AM: Indices are trading flat in the initial hour of the session amid volatility. The ongoing tug-of-war between the bulls and the bears is intensifying as we see India VIX rising by over 2.5 per cent.
Nifty Bank has been the top supporter for the market today and surged over 1.3 per cent while Nifty IT slipped more than 1.5 per cent.
The broader indices such as Nifty Midcap and Nifty Smallcap are trading flat.
Straddles have been created at 17,800 in the early hour of the session, which demonstrates that market players are expecting Nifty to trade in a range-bound manner.
Pre-market update: Asian markets have opened mixed on Wednesday morning with SGX Nifty indicating opening of about 10 points lower.
NASDAQ was under huge pressure last night as it fell about 1.33 per cent while Dow Jones ended about half a per cent higher. Thus, we might see IT stocks under pressure today.
In the last trading session, FIIs bought for Rs 1,273 crore while the DIIs also bought Rs 532 crore worth of equity.
Meanwhile, rupee is trading weak against dollar, euro and pound early in the morning.
The top gainers on Tuesday included ONGC, NTPC and SBI while Cipla & Tata Motors were the top losers. Focus will be on these stocks too for further clarity of their trend.
The 18,000 holds the highest open interest on the call side and with market being under pressure today, this level will act as a major resistance for the next two days.