Nifty needs to stay above 15,800 to move towards 16,300: Analyst

technical and derivatives analysts see nifty This week support is being found at the level of 15,500. Analysts say that if the index stays above 15,800, then it can go towards 16,300 levels. Nifty closed 0.3% higher at 15,752.05 last week amid continuous selling overseas investors,

Chandani
derivatives analyst,

Where is Nifty going?

Nifty negated the formation of lower-highs of the last three weeks and hit 15,927 points, but the follow-up activity in the higher zones was missing. The mechanical indicators are giving a bullish crossover which indicates some bounce back in the coming sessions. Nifty has to stay above 15,735 zones to move towards 16,000 and 16,161 zones while on the downside, support remains at 15,500 and 15,350 zones. July has historically had a positive track record, but short positions with highs instability Next are indicating speed breakers.

What should investors do?

Investors can use this fall to pick up good quality stocks from the auto, private banking, financial and consumption sectors, while traders are advised to play with bounceback moves with appropriate position sizes to tide over this volatile market. goes. One can go with bull call spread by buying 15,750 calls and selling 15,950 calls to play bounce towards 16,000-16,161 areas. Stock Specific We have a positive outlook in M&M,

McDowell, , , and , etc.

Rajesh Palviya
Head-Technical, Axis Securities

Where is Nifty going?
On the weekly chart, Nifty has formed a short bearish candle with a long lower shadow indicating buying at lower levels. The chart pattern suggests that if Nifty remains above 15,800 and above, there will be buying which will take the index towards 16,000-16,300 levels. The 15,886-16,172 area of ​​bearish gap in Nifty is vacant which is likely to act as a supply zone in the near future. However, if it breaks below the 15,500 level, it will see a selloff which will take the index towards the 15,300-15,200 level. For the week, we expect Nifty to trade in the range of 16,200 to 15,500 with a mixed bias. Nifty is still trading below its short term moving average 20-DMA. The Weekly Strength Indicator RSI (Relative Strength Index) is trending downwards and is trading below its reference line, indicating negative bias.

What should investors do?

Automobiles, FMCG, NBFC, Cement and IT will show interest in buying this week. The focus can be on stocks like ITC.

, TVS Motor, , , , and . In this weekly expiry, Nifty has the highest open interest at 16,000 strike on the call side, while it is at 15,500 on the put side – indicating a range between 16,000 and 15,500. We are suggesting Iron Butterfly strategy for 7th July expiry, selling one lot of Nifty 15,750 Call for Rs.153 and Nifty 15,750 Put selling one lot for Rs.153 and also buying one lot of 16,100 Call for Rs.33 And involves buying a lot. 15,400 put at Rs 47. In this strategy both the risk and reward are limited and profit will be earned above between 16,000 and 15,500. If Nifty closes/expires at 15,750, the maximum profit will be Rs 11,300. If Nifty expiry close is above 15,976 or below 15,524 then maximum loss will be Rs 6,200.

Rohit Srivastava
Founder, INDIACHARTS.COM

Where is Nifty going?

Nifty is bouncing back from highly oversold positions. The put/call ratio based on open interest after expiration is rising as the bulls try to hold. On the other hand, FIIs maintain pure short positions in index futures. Both point to a near term technical rally on short covering. Nifty has strong support near 15,500 and should go up to 16,600 in the coming weeks.

What should investors do?

Among the sectors that could benefit the most from a near-term surge in risk assets is the IT sector. The weekly RSI was sub-30 last week, the lowest reading since the start of the pandemic. Nifty IT index may see a rise of 10-15% as it is in the earning season. On the other hand, avoid the oil and gas sector.