F&O Manual |Nifty trades in thin range with key straddle position at 19,600 strike

Indian markets opened flat on September 6  amid mixed trends in Asian peers and tepid trading in the US. The benchmark Nifty50 index continued to see a slender, range-bound movement in early hours of trade. Experts remained sanguine in the market and expected dips to augur well for the bulls.

At 10am, the Sensex was down 45.37 points or 0.07 percent at 65,734.89, and the Nifty was down 10.60 points or 0.05 percent at 19,564.30. About 1,778 shares advanced, 1,099 shares declined, and 104 shares traded unchanged.

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

The Nifty weekly contract has the highest open interest at 19,600 for Calls and Puts, while the monthly contracts have the highest open interest at 20,000 for Calls and 19,000 for Puts.

“The Nifty is slowly and steadily picking up and almost reached the 19,600 zone which is an important hurdle and needs to be breached decisively, to bring conviction for further movement of the index and anticipate to re-test the 20,000 landmark in the coming days,” brokerage firm Prabhudhas Lilladher said.

Participation from the broader markets continued to be significant with the mid-cap and small-cap indices marching ahead with sustained strength and providing support to the index to its upward journey. Support for the day is seen at 19,500 levels, while the resistance is seen at 19,700, added the brokerage firm.

As per analysts, BankNifty has remained sluggish with a narrow, rangebound movement, hovering near the significant 50EMA level of 44,500 for quite some time. For the index, experts believe that a breach above the 44,800-45,000 zone is required decisively to establish a conviction for the overall trend to turn positive and anticipate further rise in the coming days. BankNifty would have the daily range of 44,200-45,000 levels.

Follow our live blog for all market action

Among individual stocks, Petronet, Voltas and IGL saw a bullish setup, while Idea, ApolloTyre and NationAlum saw a bearish build-up.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.