ICICI Direct - Derivatives View (March 31): Buy Bank Nifty in range of 34100-34200...

Nifty

After a gap up opening on the back of positive global clues, the Nifty continued to gain strength and closed near the day's high. Except Nifty Realty, all the sectoral indices ended in the green, which indicates a broad based recovery during the financial year closure. Sustainability of current levels may trigger a further up move in the index in the near term. Nifty futures ended at a premium of 68 points while IV remained unchanged. The major Put base is at 14500 strike with 40 lakh shares while the major Call base is at the 15000 strike with 43 lakh shares.

Bank Nifty

The Bank Nifty had a volatile session where it opened higher but faced continued resistance from its 34000 Call base. Aggressive buying was seen in few select private sector heavyweights due to indices rebalancing. As per options data, 34000 Call option continues to hold substantial OI. If it manages to sustain above 34000 then we may see a fresh up move due to short covering.

Daily Index F&O recommendations

1. Sell Nifty 14250 Put (April 8 expiry) in the range of Rs. 42-44

2. Buy Bank Nifty in the range of 34100-34200

For details, click on the link below: https://www.icicidirect.com/mailimages/Derivatives_View.pdf

Source : Equity Bulls

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