SGX Nifty down, technical view Nifty, options open interest; key points to watch for Tuesday

Nifty futures were trading down 16.50 points at 17,681 on the Singapore Stock Exchange on Tuesday, pointing to a lower start for BSE Sensex and Nifty 50.

Nifty futures were trading down 16.50 points at 17,681 on the Singapore Stock Exchange on Tuesday, suggesting an early spread for BSE Sensex and Nifty 50. In the previous session, the major indices finished lower. 1.6% increase, starting the new calendar year 2022 on a high note. Equity investors added nearly Rs 3.52 lakh crore to their wealth in the previous session as the overall market capitalization of BSE-listed companies climbed to Rs 269.52 lakh crore. Asian peers were also seen trading with gains in early trading on Tuesday. In overnight trading on Wall Street, the S&P 500 and Dow Jones Industrial Average set closing records on Monday on the first trading day of the year, helped by gains from Tesla Inc and bank stocks.

FII, DII data: On Monday, foreign institutional investors (FII) bought shares worth Rs 902.64 crore, while domestic institutional investors (DII) acquired shares with a net value of Rs 803.11 crore on the Indian stock market.

Call, put OI: The maximum open call interest of 19.92 lakh contracts was observed at 17,500 strikes, followed by 18,000 strikes and 18,500 strikes. The call entry was observed at 18,200 business hours and the call for settlement at 5 business hours. On the other hand, the maximum open interest in Put was observed at 17,000 strikes followed by 17,500 and 17,200 strikes. The Put writing was seen at 17,500 and the Put taking place at 16,800.

Stocks under F&O ban: At the start of the January series, not a single stock was under the F&O ban for January 4. If the open interest of a stock exceeds 95% of the MWPL (market-wide position limits), all M&O contracts for that stock enter a blackout period.

Technical view of Bank Nifty: Bank Nifty formed a bullish candle on the daily chart as it rose 2.65%. Now the next hurdle is at 36,660. “Any drop near its 21-day exponential moving average which is at Rs.35836 can be seen as an immediate buying opportunity. The first sign of real weakness would only come in if we start to slide below the lower range of Rs 35,435-35,400. So far, momentum indicators show no sign of negative divergence, ”research analyst Aprajita Saxena told Financial Express Online , Trustline Securities. Saxena added that for intraday traders 36600-36570 would be the key support level, trading above the same level the index may reach 36930-37280 levels. Below these levels it may drop to 36380-36250 levels.

Clever support, resistance: On the daily charts, the Nifty formed a long bullish candle which supports a new uptrend, an analyst said. “In addition, after a long time, the Nifty managed to close above 50 days of SMA. We believe the market is in a strong uptrend, but due to a temporary overbought situation, the market may record profits at higher levels. Therefore, buying on an intraday correction and selling on a rally would be the ideal strategy for day traders. For traders, 17550-17500 would be the main support levels to watch on the Nifty. On the other side, 17700-17735 would act as a key resistance level. Below 17475 on Nifty’s uptrend would be vulnerable, ”said Shrikant Chouhan, head of equity research (retail), Kotak Securities.

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