F&O Manual | Strong support seen at 19,750 for Nifty as bulls regain momentum

The Indian equity benchmarks Sensex and Nifty opened gap-up on October 11 and continued to gain as the day progressed to trade around 0.5 percent higher in the afternoon. At 12.46 pm, the Sensex was at 66,392 and the Nifty at 19,787, both up 0.5 percent from the previous day.

Broader markets, too, moved higher, with BSE smallcap and midcap indices up a percent each. All sectoral indices were trading in the green. Metal and realty were up 1 percent and 1.5 percent.

The options data suggests heavy put writing at around 19,750 strike. Kapil Shah, Technical Analyst, Emkay Global Financial Services Limited, said “The market index has broken through the crucial resistance level of 19,800, indicating a bullish trend. Intraday analysis suggests that the index may rise up to 19,870 levels.”

As long as the index remains above 19,700 level, it will continue to be in a bullish zone. Smallcap and micro-cap indices have been performing well, and the realty sector is showing strength among sectoral indices.

“From a positional perspective, the healthcare and IT sectors seem promising, and buying opportunities in ITBEES can be considered,” he said.

For the Bank Nifty, which has the highest weight in Nifty, the immediate hurdle is at 44,760 level. In the short term, the banking index will remain positive as long as it stays above 44,334 level. “If it moves above 44760, it will favour the bulls,” Shah said.

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Cement and IT sectors gained, with ACC, Ramco Cement, JK Cement and Wipro seeing a long buildup.

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