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Nifty gains 66 points and stands at 19,389 points at the end of the day. Analysts have warned of a potential downturn, as Nifty ends its session with a “Hanging Man” candlestick pattern and hints at a short-term reversal if the low of the candle is breached
IT and financial services stocks were among the top drivers of the market while some selling in oil and gas and realty names knocked off some points from the top of the day.
Nifty saw huge short covering of the 19,300 call on Tuesday, which once again caused it to rally. As we get closer to the 19,500 mark on Nifty in the July expiry, expect to see some consolidation on the index. Bank Nifty is slowly seeing short straddles start to be created at the 45,500 mark for the July-end expiry. Taking the premium into account, one should not expect a run-away rally post 45500 in the very near term. It is also healthy if the indices consolidate for some time as this makes it ready for the next leg of either downside or upside depending upon the momentum.
Indiabulls Housing Finance has been placed under the futures and options (F&O) ban, but will still be available for trading in the cash market. The ban on a stock occurs when the open interest (OI) crosses 95% of the market-wide positions limits (MWPL) and is only lifted when the OI falls below 80%. Traders who deal with indices are not affected by security bans. Indiabulls Housing's MWPL stood at 97.2% on Friday, with OI at 59.5 million, up by 9.9% from the previous session.
Hectic buying in index majors Reliance Industries, ITC and HDFC twins also added to the market momentum