A naukri.com initiative
HinduBusinessLine
1d
177
Image Credit: HinduBusinessLine
F&O Tracker: Bull trend not broken yet in Nifty 50 & Nifty Bank futures
- Nifty futures (Jun) lost 1.5% last week with open interest dropping by 3% to 118 lakh contracts, signaling long unwinding.
- Put Call Ratio (PCR) for nearest weekly options was 0.70, indicating bearish outlook due to more call selling.
- PCR for June monthly options was 1, showing a bearish bias from 1.15 a week ago.
- Price action suggests bulls not losing control despite decline, with support at 24,650 holding.
- Price range of 24,650-25,250 remains valid until a break occurs, indicating uncertainty in trend direction.
- Bullish trend intact; if Nifty futures surpass 25,250, rally towards 26,000 with resistance at 27,000 expected.
- Bearish momentum could drop Nifty futures below 24,650 towards potential support levels at 24,200 and 24,000.
- Strategy suggests holding Nifty futures (Jun) buy trade with revised stop-loss at 24,550 and target at 26,000.
- Option traders can consider buying June expiry 24,800-call option for short-term trade with target and stop-loss set at ₹500 and ₹100 respectively.
- Nifty Bank futures (Jun) dropped 2% last week with a 7% decrease in open interest, indicating long unwinding.
- PCR of June options fell from 1 to 0.70, pointing to a bearish sign in Nifty Bank futures (Jun).
- Chart analysis suggests contract above key support levels with important support at 55,400, 55,000, and 54,000.
- Positive inclination retained as long as 54,000 support holds, with potential uptrend towards 57,800-58,000.
- Suggested strategy advises traders to wait due to market uncertainty; consider buying Nifty Bank futures (Jun) if it drops to 55,000.
- Target and stop-loss for Nifty Bank futures (Jun) trade at 57,500 and 54,000 respectively.
Read Full Article
10 Likes
For uninterrupted reading, download the app