After a sequence of optimistic closes, Nifty retreated from the upper ranges on Thursday. It opened on a unfavorable be aware under 12,850. However, it recouped early losses to make a excessive at 12,963. Eventually, the Nifty ended under the 12,800-mark closing close to the day’s low. Inability to surpass or maintain above 12,950 has slowed down the momentum on the upside. While ranges of 12,800 must be carefully watched, sustenance under 12,800 may entice delicate correction until 12,700-12,650 zone.
On the choices entrance, vital open curiosity additions are seen at 12,900 and 13,000 name strikes for the November sequence whereas 12,800 holds second highest OI base, which once more highlights that sustenance under 12,800 may imply that Nifty is due for imply reversion.
Bank Nifty snapped 4 periods’ profitable streak, regardless of Wednesday’s bullish candle with shut close to day’s excessive. In right this moment’s commerce, Bank Nifty traded within the unfavorable territory all through the session. Levels of 29,800-30,000 may end up as rapid hurdles, whereas on the flip facet Bank Nifty may revisit ranges of 28,600-28,500.
Sell PEL (Piramal Enterprises) November future close to Rs 1,395-1,405
- Stop loss: Rs 1,455
- Target: Rs 1,290
- Bucking the current uptrend, the inventory has did not surpass prior week’s peak. Inability to maintain at present ranges may drag the inventory decrease until Rs 1,300 one.
Future & Option technique: Covered Put on UPL
Sell UPL November future close to Rs 417-420
Sell 400 Strike November put close to 5
- Stop loss: Rs 432
- Target: Rs 400
- Ongoing corrective section of UPL is prone to proceed. Fresh shorts are seen within the futures and incapacity to carry present ranges may drag the inventory decrease until the Rs 400 zone.
Buy Oberoi Realty close to Rs 450-455
- Stop loss: Rs 430
- Target: Rs 495
- With sustained strikes above the 50-day EMA, the inventory is step by step gaining traction on the upside. Appearance of bullish candle, breaching hurdle level at Rs 460 is prone to raise the inventory larger to revisit October month’s peak close to Rs 499.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities)