Stock picks of the day: Immediate hurdle for Nifty is placed at 12,000
Episode 1386, Jul 02, 2019, 02:55 AM
The Nifty50 has been gradually moving up after finding support at its 50-days moving average (DMA), currently placed at 11,708. The Nifty50 has reclaimed a level above its 20-DMA which is currently placed at 11,840.
Now, the Nifty is trading above all important moving average parameters, indicating a bullish trend on all time-frames. The immediate resistance for the Nifty is seen at 12,000 odd levels, which happens to be the previous top on the daily charts.
BankNifty has been outperforming Nifty and is placed better on the charts. It is advisable to hold longs in BankNifty with a stop loss of 30,800 on closing basis.
From the derivative front, the highest OI is seen at 11,500 strikes in Put and 12,000 strikes in Call. On July 1, we have seen put writing at 11,800 and 11,900 strike prices, which indicates limited downside in Nifty from here.
From the derivative front, the highest OI is seen at 11,500 strikes in Put and 12,000 strikes in Call. On July 1, we have seen put writing at 11,800 and 11,900 strike prices, which indicates limited downside in Nifty from here.
On the upside, Call writing has been witnessed in 12,300-12,400 strikes. This setup indicates that there are higher chances of Nifty crossing a hurdle of 12,000 in the short term.