F&O Manual|Indices trade flat; sideways momentum in Nifty likely to persist

Indian benchmark indices are trading flat as consolidation picks up at all-time high levels.

For today’s session, Rajesh Srivastava, a derivatives trader, expects Nifty to trade sideways while in short term, brokerages anticipate Nifty to remain positive and move towards 22,700 levels.

At 11:45 hrs IST, the Sensex was up 76.84 points, or 0.1 percent, at 73,882.99, and the Nifty was up 31.60 points, or 0.14 percent, at 22,410.00. About 1,220 shares advanced, 2,098 shares declined, and 123 shares unchanged.

According to ICICI Securities: “From a rollover perspective, Nifty has initiated the new series with a relatively high leverage of nearly 1.3 crore shares, while Foreign Portfolio Investors (FPI) maintain net short positions in Index futures. Banking heavyweights like HDFC Bank and Kotak Bank have continued the March series with substantial short positions. Conversely, Pharma and Metal stocks are commencing the series with a significant positive bias.”

“On the options front, a sharp pullback observed on Friday triggered heavy Put writing at At-The-Money (ATM) and Out-of-The-Money (OTM) strikes, with the 22,000 Put strike holding the highest Put base. On the higher side, we believe the current momentum in the markets may extend towards 22,700 levels in the coming sessions. Moving forward, we anticipate Nifty to remain positive and move towards 22,700 levels in the upcoming sessions,” added the brokerage firm.

Bank Nifty

As for Bank Nifty , Axis Securities said: “On the weekly chart, the index has formed a bullish candle with a lower shadow, indicating support at lower levels. The chart pattern suggests that if Bank Nifty crosses and sustains above the 47,500 level, it would witness buying, leading the index towards 47,600-47,800 levels.”

“However, if the index breaks below the 47,200 level, it would witness selling, taking the index towards 47,000-46,700. For the week, we expect Bank Nifty to trade in the range of 46,700-47,800 with a mixed bias, ” added the brokerage.

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