Nifty hits fresh all-time high; Bank of Baroda, Indigo & Bandhan Bank witness long built-up

Market update at 10:00 AM: After opening with a gap-up on Wednesday, Nifty witnessed profit-booking and touched a low of 15,723.10. However, soon after that, it recovered and it’s currently trading near the day’s high at 15,787.60.   

Among the sectoral indices, barring Nifty Auto, all other indices were trading in green with Nifty PSU Bank and Nifty Realty leading from the front.   

On the options front, Nifty 15,700 Put option has seen a massive addition in the open interest of over 18.4 lakh in today’s session and with this, the maximum concentration of open interest on the Put side stands at 15,700 strike. On the other hand, the 15,800 Call option has seen the addition of more than 11 lakh shares in the open interest. With this, the total open interest in 15,800 Call option stands at 50.41 lakh, which is the highest on the Call option side. The 16,000 Call option has the second-highest open interest, which stands at 50.06 lakh shares.   

A long built-up is seen in Bank of Baroda, Indigo, Bandhan Bank, Biocon, and BHEL while short built-up is witnessed in CONCOR, BEL, SRF, UBL and Tata Motors.   

Nifty, on Tuesday, opened the session marginally positive at 15,773 and hit a record high of 15,778. However, it could not sustain those gains for long and slipped below 15,700. It took support around the prior bar low, recovered from its lows, and ended the day with a modest loss of 0.07 per cent.   

Bank Nifty, which ended down by 1.01 per cent once again played a spoilsport. However, Nifty IT protected the market from a bigger loss as it gained 1.20 per cent. Pharma and FMCG indices also ended with gains of 0.86 per cent and 0.84 per cent, respectively. The broader market continued to outperform the headline indices as Nifty Midcap-100 and Smallcap-100 added 0.60 per cent and 0.54 per cent, respectively. Interestingly, the volatility index i.e. India VIX slipped further by 2.20 per cent.   

The price action of the day on Nifty daily chart formed a small body bearish candle with a long lower shadow, which resembles a hanging man pattern. Going ahead, the identical low of the last two trading sessions, which are placed in the region of 15,678-15,680, is likely to act as an immediate support level. A decisive move below 15,678-15,680 can trigger a much-needed correction, which can take the index towards the levels of 15,450 in the near term, where major support is placed.   

On the other hand, a move above the level of 15,778 may extend the current rally towards the levels of 15,900-15,950 in the near term.