Sensex hits triple century; PE options base shifts to 15,200 strike in Nifty

Market Update at 11:10 AM: The key benchmark indices extended their early morning gains and were seen trading near the day’s high with Nifty & Sensex trading above their 15,300 mark and 50,950 level, respectively.   

On the options' front, the Put option base shifted from 15,000 to 15,200 Put option strike. As in today’s session, more than 28 lakh shares were added to the open interest in the 15,200 Put option. With this, the total concentration in 15,200 Put option surpassed 60 lakh shares in the open interest.   

Market Update at 10.20 AM: Indian markets are trading with modest gains on Wednesday. Nifty is up by 32 points at 15,240 while Sensex added 111 points and is trading at 50,748 levels.   

Among the sectoral indices, Nifty Media and Nifty Realty were the top gainers while on the other hand, Nifty Metal & Nifty Energy were the top losers.   

Talking about stock-specific action, the stock of Kirloskar Brothers got locked in the upper circuit. The company reported its earnings in which, standalone net profit jumped 80.40 per cent to Rs 54.30 crore for the quarter ended March 31, 2021, as compared to Rs 30.10 crore in the same period last year. Net revenue of the company rose moderately by 11.83 per cent at Rs 641.80 crore in January-March quarter of this fiscal as against Rs 573.90 crore in the corresponding period last year.  

In the F&O space, more than 100 stocks were trading with gains of anywhere between 0-3 per cent, while only one stock gained between 3-5 per cent.  

Nifty witnessed a picture-perfect start on Tuesday; however, after a strong start, the index gradually kept paring gains throughout the day. In the later part of the trading session, it slipped marginally into the red but a pullback in the last hour of the trade helped the index to keep its head above the 15,200 mark.   

The price action of the day formed a long bearish candle with a minor lower shadow, but it continued to maintain its rhythm of higher high & higher low. However, for the second straight day in a row, the index has closed off the day’s high, which indicates some sort of discomfort among the bulls at higher levels.   

Now going forward, the level of 15,300 on the upside, would act as an immediate resistance level as 13,306 contracts have been added in the open interest on Tuesday. With this, the total open interest in the 15,300 Call option strike stands at 62,157 contracts, which is the second-highest after the 15,500 Call Option strike. On the downside, the zone of 15,110-15,200 is likely to act as a support zone as 15,577 contracts have been added in the open interest in the 15,200 Put option strike on Tuesday.   

Overall, the index is likely to trade in the range of 15,110 to 15,300. A move above 15,300 could open gates for a new lifetime high. However, a close below 15,110 may drag the index towards the psychological support of 15,000.