Benchmark indices trade higher; Nifty Metal shines, 15,800 PE witness massive addition of OI

Market Update 2:30 PM: The Indian benchmark indices continue to trade in green during the last leg of the week's final trading session. Nifty is holding its head above 15,800 while Sensex is seen trading above the 52,500 mark. 

Talking about the sectoral performance, a majority of the sectoral indices are trading in red with Nifty Realty and Nifty Media being the top losers. On the flip side, Nifty Metal, Nifty IT, and Nifty Pharma are the top gainers.   

On the options' front, the level of 15,800 is a key level to watch out for as aggressive addition of open interest is seen in both the 15,800 Call option and Put option in today’s session. The 15,800 Call option has added 20.83 lakh shares in the open interest today. With this, the maximum concentration of open interest on the Call side stands at 15,800 strike. In the last half an hour, the 15,800 Put option has also seen massive open interest addition of 20.63 lakh shares. 

Market Update 10:25 AM: Indian markets logged a fresh all-time high on Friday with Nifty and Sensex inching higher by nearly half a per cent in the early deals. 

Sensex and Nifty were trading above their important psychological levels of 52,500 and 15,800, respectively. Barring Nifty FMCG, all other indices were trading in the green, led by Nifty Metal and Nifty IT.  

Buying interest was visible in the broader markets with Nifty Midcap-100 and Smallcap-100 gaining 0.48 per cent and 0.73 per cent, respectively.   

Among stock-specific action, the stock of eClerx Services got locked in a 20 per cent upper circuit after the company reported a strong set of numbers for the quarter ended March 2021. 

The market consolidated in a small range since last Thursday. Nifty gained just 47.30 points in the last five trading sessions. Wednesday's move engulfed the previous four days’ move. It faced resistance at 127.6 retracement (15,785) of the prior fall. It tested for three days and then, declined.    

After a series of hanging man candles, the bulls finally surrendered on Wednesday with a one per cent drop. It has registered a distribution day after a long gap. After a 240-point range, Nifty had formed an inside bar on Thursday. With Wednesday's decline, the technical price structure has been disturbed. We are suspecting the strength of the bulls, as with low volume, low momentum persists. On a weekly chart, the index is forming a Doji candle. Steve Nison's principle says a Doji at a lifetime needs a close below it for bearish confirmation. The index achieved all the short-term targets on Wednesday and is now, retracing. A decisive close below the 15,566 will lead to a significant weakness. However, on Thursday, Nifty gained 100 points while the momentum indicator i.e. the MACD histogram declined further down. Even the positive directional indicator i.e. the +DMI also declined. The Elder impulse system showed that the index is in a neutral stance.    

As Nifty formed an inside bar, Wednesday's high of 15,800 and the low of 15,566 will act as resistance and support for the next few days. In any case, if Nifty closes above the level of 15,800, the weekly MACD may give a buy signal.