Market at Open: Nifty hovering around 100-DMA; Put Writing at 17,900 & Call Writing at 18,000

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market at open: nifty hovering around 100-dma; put writing at 17,900 & call writing at 18,000


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market at open: nifty hovering around 100-dma; put writing at 17,900 & call writing at 18,000

Introduction:

Nifty opened 25 points higher at the 17,920-level. Broader indices too gave a positive opening.

Market Breadth

On the BSE, 946 shares advanced, and around 469 declined which shows Bulls have some domination in the market. Whereas, 130 shares remain unchanged.

Sectoral Overview:

Sectoral indices look mixed with Nifty IT being the top performer, up by 0.7%. Whereas, Metal & PSU Bank are down 0.3% each.

Options data

The nifty option chain for the weekly contract, i.e., 12 Jan 2023 expiry, shows strong Put Writing at the 17,900 strike price, indicating that options traders expect the index not to fall below this level. Whereas, on the upside, strong Call Writing is seen at the 18,000 strike price indicating traders expect Nifty not to go above this level.

Technical Analysis

In the previous session, Nifty closed lower slightly below 100-DMA level. However, the sentiment still remain intact as index didn’t give a decisive breakdown from the DMA level. Also, the index seems to have a good support at 17,800 level where Nifty had reversed and had marked the low of December. Today, Nifty’s positive opening is keeping the index around 100-DMA level.

Global Impact

The 3 major indices of the US market closed positively with Nasdaq & S&P rising over a percent. Whereas, the major indices of European bourses too closed in green. Today, the Asian market looks mixed which keeps the overall global sentiment positive for Indian indices.

USDINR Outlook

After giving a steep fall over the sessions, USDINR took a break and formed a small candle in previous session. The pause was taken at 100-DMA level. Today, as well the currency pair opened within previous range indicating a dull start. One can have doubts on further fall as usually 100-DMA is seen as a key reversal signal.