ICICI Direct Derivatives Weekly View (April 16): Sustainability above 14700 may trigger fresh uptrend...

Sustainability above 14700 may trigger fresh uptrend...

The Nifty recovered towards 14700 last week after witnessing a sharp fall of almost 500 points on Monday. Positive global cues also helped markets to move higher despite fears of fresh lockdowns and a depreciating currency. The Nifty closed the week with a loss of 1.6% while midcap and small cap indices closed the week with loss of almost 3% each. Sustainability of 14700 is expected to lead to a fresh up move.

On the data front, the Nifty has major Call base placed at 14700 strikes with highest Call base placed at 15000 strike for the weekly settlement. On the downside, 14500 remains a crucial support due to continued build-up seen in this strike. Hence, we believe that move above 14700 may trigger upside momentum towards 15000 in the April series.

Bank Nifty: Sectoral churning expected to trigger buying in banking...

The Bank Nifty witnessed a volatile week where moves were seen on both sides. Private leaders continued to witness profit booking but stock like HDFC Bank reverted from their major Put base. However, PSU banks continue to remain laggard and witnessed continued selling pressure.

As technology stocks witnessed profit booking post quarterly numbers of TCS and Infosys, sectoral rotation helped beaten down segment. Banking stocks witnessed some short covering to recover from the lows near 30500. In the last two sessions, fresh long OI build-up was observed as it closed near its sizeable Call base of 32000.

Positional Future Recommendation

Long Page Industries (PAGIND) April future in range of Rs. 30300-30400; Target: Rs. 31480; Stop Loss: Rs. 29800

Rationale

Page Industries largely remained in a range with support found around 28000 Rs. levels amid high volatility. Recently, with a pick-up in delivery volumes, the stock managed to close above Rs. 30000 levels. Along with it, the open interest in the stock was continuously declining, which seems positive as the price remained intact. Midcap stocks found some traction in recent days. We feel Page industries is well placed to move further higher. We feel a move above Rs. 30400 should accelerate the momentum and it should head towards Rs. 31500 levels.

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

Source : Equity Bulls

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