F&O Manual | Indices recover from initial losses; Bank Nifty sees crucial support at 45,500 level

Indian benchmark indices pared losses on Feburary 14 seen in early trade driven by negative global cues. Among sectors, Information Technology, bank and pharma are down 1 per cent each, while some buying is seen in the power, metal and oil & gas stocks.

At 12:52 hrs IST, the Sensex was down 293.35 points, or 0.41 per cent, at 71,261.84, and the Nifty was down 76.80 points, or 0.35 per cent, at 21,666.50. About 1,879 shares advanced, 1,309 shares declined, and 79 shares unchanged.

Derivatives data reveals high Open Interest in 45,000 PE, showcasing writing set-up, along with 46,000 CE, which has been seeing selling pressure. For today, the bias remains upward once the index sustains over 45,200 levels for 10 minutes, despite PCR standing at 1.01, favouring a weak bias.

As per Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox, “Until the support of 44,500 is defended on a closing basis, the index may see revival in the upward bias. Any corrective move towards 44,500 -44,700 shall witness accumulation and buildup of long bias.”

“The index is sustaining over the crucial support of 45,400 -45,500 levels, implying a positive bias for today. The immediate hurdle is set at 45,800 mark, which once capitalised, the positive breakout could hit 46,000 – 46,250 range,” he added.

Among individual stocks, long build up is observed in Hindustan Copper, ONGC and IOC. While long unwinding is seen in Sun Pharma, Ipca Labs and Dr Reddy’s Labs.

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