NIFTY PREDICTION OPTION CALL PUT TIPS & Q4 REUSLT REVIEW FOR 20 JULY 2022

20 july 2022

CEAT Ltd             

Century Plyboards (India) Ltd

Gland Pharma Ltd           

Hathway Cable & Datacom Ltd  

Havells India Ltd              

IndusInd Bank Ltd           

Mastek Ltd        

Oracle Financial Services Software Ltd   

Syngene International Ltd           

Tata Communications Ltd

Wipro Ltd

Indian benchmark indices experienced bouts of volatility amid weakness in global markets, IT and pharmaceuticals. But the recovery in banking, auto and metals stocks did a good job of counteracting this. Developed markets were negative on slow hiring plans announced by blue chip multinationals such as Apple Inc. in anticipation of a global economic slowdown. However, given the strong fundamentals of the Indian economy, we believe the immediate impact of the domestic economic slowdown will be milder than its global peers. The bulls continued their positive momentum for the third straight day. Benchmark indices extended the rally on July 19 with Nifty closing above 16300. At the close, the Sensex was up 246 points, to 54767 and the Nifty was up 62 points to 16340. Technically, Nifty/Sensex has not only cleared the short-term resistance at 16325/54700, but also manages to close above it, which is broadly positive. In addition, it is also holding a higher bottom formation and has formed a long bullish candle on daily charts. Markets extended gains, rising nearly half a percent amid mixed cues. Initially, weak global signals weighed on sentiment, but gains in select index majors, particularly in the banking sector, gradually pushed the index higher. Markets are taking solace from global indices and the boost from the banking package, which carries significant weight, further adding to the positive sentiment. The recent bounce in laggards like IT and metals has further eased the pressure.

We maintain our positive but cautious stance, favoring sectors such as autos, FMCG and banks for long opportunities. The short-term trading setup points to further upside from the current levels. For traders now, 16350/54700 would be the trend maker level. Above that, the index could move to 16450-16550/55000-55400. On the other side, the index could slip below 16200 /54200 to as low as 16100 /54000. Nifty remained strong throughout the session as it moved above the previous swing high on the daily time frame. A higher top high bottom formation is visible on the daily time frame. The Bank Nifty Index continued its strong buying momentum and remains in buy mode with immediate support at the 34500 level. The index is likely to test the 36800 level on the upside where it will meet resistance at the previous high level. Immediate resistance on the options front comes in at 36800-37000 , where the highest open interest is being built on the call side.

Resistance: 16400, 16475, 16550

Support: 16325, 16250, 16150