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Nifty likely to open gap down on back of weak Asian cues: ICICIdirect

Nifty is likely to open gap down on the back of weak Asian cues. Sell Nifty in the range of 10090-10100 for target of 10040, stop loss: 10120, says a report by ICICIdirect.

ICICIdirect's Derivative Report:

Nifty


Benchmark indices continued to trade with a positive bias for a fourth day in a row with future premium widening further on the back of formation of long positions. Despite retracing from highs, the index remained firm above the previous day’s low, which provided a sentimental boost for most stocks. IVs continued to remain choppy, which declined for a sixth day in a row.

Apart from FMCG and realty, all major sector remained positive, which helped the index end with a gain of over 20 points in future. Nifty futures settled at a premium of 27 points with decline in IVs by 2.5 percent. The highest Put base is at the 9900 strike with 59 lakh shares while the highest Call base is at the 10200 strike with 44 lakh shares. stock trading free tips

Nifty Bank

The index traded with a positive bias but faced some difficulty in moving at the same pace above 24900 to approach the highest Call base. However, stocks like Axis Bank along with HDFC Bank helped the index end at the highest levels for the weekly expiry. Despite a sharp rally from 24300, the writing OI in 25000 Call strike still remains intact indicating a major hurdle. We feel only a close above this levels would open the gates for higher targets.

Index Outlook
Nifty Future: The Nifty is likely to open gap down on the back of weak Asian cues. Sell Nifty in the range of 10090-10100 for target of 10040, stop loss: 10120.

Nifty Bank Future: The index traded with a positive bias but faced some difficulty inmoving at the same pace above 24900 to approach the highest Call base. However, stocks like Axis Bank along with HDFC Bank helped the index end at the highest levels for the weekly expiry. Despite a sharp rally from 24300, the writing OI in 25000 Call strike still remains intact indicating a major hurdle. We feel only a close above this levels would open the gates for higher targets. Sell Nifty Bank in the range of 24900-24950, target: 24850-24750, stop loss: 25050.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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