Nifty expected to trade rangebound to positive, crucial support at 22300

The Nifty, which ended the previous session on a flat note after remaining rangebound, will continue to trade with a bullish undertone with the 22,300 level acting as crucial support, analysts have said.

Nifty highlights

The Long-Short Ratio stands at 43: 57, while India VIX is at 13.64. Foreign institutional investors (FIIs) have a positive outlook for both indices and Futures and Options (FnO) stocks. The Nifty witnessed a significant long build-up of 3.7 percent, and its Put-Call Ratio for Open Interest (PCR_OI) is at 0.95, indicating a rangebound to positive trend.

Open Interest (OI) additions persist in major Put Option (PE) strikes such as 22,000, 22,050, 22,250, and 22,300. On the Call Option (CE) side, OI additions were observed in strikes like 22,400, 22,700, 22,750, and 22,800.

Nifty levels to watch out for on March 13

“Irrespective of the intraday volatility, Nifty still manages to close above support of 22,300 and going forward this still remains a crucial support to watch. Undertone bullish as long as it remains above this support. Trend reversal only below 22,200,” Soni Patnaik, Assistant vice president derivative research at JM financial, said.

“For the current weekly series, Nifty PCR is currently at 0.75, and max pain is at 22,400 strike. 10-20 EMA zone of 22,200-22,300 will act as a crucial support zone while resistance of 22,410 needs to be crossed and sustained for a fresh leg on the upside upto 22,550-22,600, ” said Sudeep Shah, DVP and Head of Derivative and technical research at SBI Securities.

Monthly expiry

The Nifty for this monthly expiry has seen a good amount of short straddles being created at the 22,500 levels. “This means that the market participants expect the expiry to be between 22,000 and 22,900 range. As 22,000 is a strong floor for the index, one should venture out into a long position close to this level between 22,150 and 22000 or once prices cross and stabilize over the 22,500 level,” Hedged.in CEO Rahul Ghose said.

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