Nifty outlook

Indices moved sharply as Reliance industries surged more than 10 per cent

Market traded with positive sentiments through-out the day and rallied up to 9,200 led by Nifty’s heavy weight Reliance Industries Limited. Global markets traded positive and traded with strong upside momentum. Nifty managed to close at 9,187.30 adding 205.85 points. Media, FMCG and automobile sector traded with positive sentiments whereas Reality sector closed in red mark. Nifty bank closed at 19,701.80 adding 292.45 points from the previous day’s closing.

As per weekly option data, handful of put writing on lower strikes ranging from 8,800 to 9,200 is seen which shows Nifty would witness firm support in sub 9,000 zone. 9,000 will act as support as maximum put OI is placed here. But Nifty likely to face stiff resistance at 9,500 as maximum call OI is placed here. We can witness weakness only if Nifty breaks level of 9,000. Therefore, traders should try to create long position keeping close eye on 9,000.

Courtesy : Business Standard