F&O Manual |Nifty tests 19,350, Bank Nifty rebounds after 5-day losing streak

The Indian market opened lower on August 17, tracking weakness in global shares which came under pressure after the US Federal Reserve meeting minutes indicated the possibility of more rate hikes.

At 11.30 am, the Sensex was down 0.51 percent at 65,203, and the Nifty was down 0.52 percent at 19,363.  About 1,820 shares advanced, 1,150 declined and 102 remained unchanged.

The IT index was down 0.5 percent. The PSU Bank index was up a percent. BSE midcap and smallcap indices are up 0.5 percent each.

The bars reflect the change in open interest (OI) during the day. The red show call option OI and the green put option OI.

Weakness persisted in the Nifty which tested 19,350. Call writers were dominant,  with heavy call writing at 19,500, 19,600 and 19,800.

The level of 19,300 acts as strong support for the Nifty, which showed signs of reversal on July 7 and August 3 from the same levels, Ashwin Ramani, Derivatives & Technical Analyst at Samco Securities, said.

“The Nifty has been moving in 19,300-19,500 for the last two days, with both these levels acting as strong support and resistance, respectively. A break below 19,300 can drag the Nifty until 18,650, where its next visible support is placed. A strong close above 19,500 is likely to ignite buying interest again in the Nifty, he said.

The bars reflect the change in open interest (OI) during the day. The red show call option OI and the green put option OI.

Bank Nifty

The banking index traded higher after closing in the red for five consecutive days. For the day, 43,800 was acting as immediate support and analysts expect buying to emerge from this level. The maximum call open interest (OI) was at 44,000 strike, which would act as a resistance followed by 44,200 strike.

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Among individual stocks, Adani Ports, REC Ltd and BSoft saw a bullish setup, while ITC, JK Cement, and Glenmark saw a short build-up.

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