There are higher possibility of the key sectors like banks, FMCG, IT, etc., continuing to relatively outperform or at least improve on their relative strength. While staying vigilant on existing profits, we recommend using trailing stop-loss to protect gains. A positive outlook is advised for the day.
Analysts say long liquidation seen in Nifty while shorts have been rolled over in Bank Nifty, expect Nifty to trade in 15,500-16,200 range, Bank Nifty in 34,000-35,800 for July F&O Series. The Nifty ended Thursday at 15,790.45, up 0.66%, while the Bank Nifty closed up 0.73% at 34,827. The Nifty has outperformed having fallen 0.7% from its life high of 15,901.6 while the Bank Nifty has corrected almost 8% from its high of 37,708.75.
Derivatives outlook
India VIX fell by 5.98 per cent from 15 to 14.10 levels. India VIX is on a downward slope, near its lowest levels in the last 17 months, since February 2020. A falling VIX could continue to push a buy-on-decline strategy in the market. On option front, maximum Put OI is at 15000 followed by 15500 strike price. while maximum Call OI is at 16000 followed by 16100 strike price. Call writing was seen at 15800 and 16100 strikes, while Put writing was seen at 15500, then 15709 level strikes. Option data suggests an immediate trading range between 15500-16000.
Bank Nifty opened positive on Friday, but moved towards south for the first half of the day. The latter part of the day saw a range-bound movement and finally the index closed with loss of around 80 points. Bank Nifty formed a bearish candle on the daily and weekly scale, as supply pressure is seen at higher levels. Now the index has to hold above 35000 levels to witness an up-move towards 35500 and 35750 levels,