F&O Manual | Nifty trades flat amid profit-booking; key resistance at 20,100 strike

The market opened in the green on September 12, with the Nifty trading above 20,000 points, but as the day progressed, the broader markets witnessed an increased rush to book profits that eventually drove both the benchmark indices to a flat, amid heightened volatility.

The BSE SmallCap index declined 2.5 percent, while the BSE MidCap index suffered a 2 percent hit. Auto, oil and gas, power, and realty segments recorded declines ranging from 1 percent to 1.5 percent.

At 11am, the Sensex was up 47.75 points or 0.07 percent at 67,174.83, and the Nifty was down 4.60 points or 0.02 percent at 19,991.70. About 622 shares advanced, 2447 declined, and 65 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

Options data suggests heavy call writing at the 20,000-20,200 zone, indicating a strong upside resistance. As per Angel One, the bulls are firmly in control, as the Nifty has gained nearly 4 percent in September. “With the continuation of a ‘higher top higher bottom’ pattern, we maintain a positive outlook and anticipate reaching further milestones in the near term. However, it’s worth noting that hourly indicators are currently in overbought territory, suggesting that it may be prudent to focus on buying during intraday dips,” the brokerage firm said.

Immediate support is identified around the 19,900 to 19,850 levels. On the contrary, the immediate resistance as per reciprocal retracement levels stands at the 20,160 – 20,200 zone.

“We believe positive bias is likely to continue. Incase there is any correction towards 19,900 level than it should be used to create fresh long positions,” ICICI Securities advised.

Follow our live blog for all market action

Among individual stocks, LaurusLab, RECLtd and Idea saw a bearish setup, while Petronet, PFC and BHEL saw long unwinding.

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.