Market witnessed a Correction

Weekly F&O Data

by Shreya Anaokar Last Updated: Feb 13, 2023 - 07:09 pm 882 Views


Nifty50 13.02.23.jpeg

Nifty started the new week on a positive note, but it was soon corrected led by the IT stocks. The Banking space too then witnessed selling pressure and as a result, Nifty corrected towards 17720 around noon. The index recovered marginally from the lows but did not manage to recover much and it ended the day below 17800 with a loss of about half a percent.

The markets did not see any positivity in the first trading session as the indices corrected and traded with a negative bias throughout the day. Except for FMCG, all the sectoral indices ended in the red indicating a broad market sell-off. Technically, the Nifty index still continues to trade within a channel and the prices are yet to breach the resistance end. The FII also still continue with their bearish positions in the index futures segment with more than 80 percent of the positions on the short side. In the options segment, 17800-17900 call options witnessed decent open interest addition while the 18000 call still has the highest open interest.  Hence, until we see a breakout in the index from the resistance end and short covering by the stronger hands, the market is likely to oscillate within a range. The breakout will be seen above the 17900-17950 range which will be the trigger for the markets to rally higher.  On the flip side, 17700 followed by 17635/17570 will be seen as support levels. Until we see a price breakout above the resistance and short covering by FIIs in the index futures, traders should trade with a stock-specific approach and look for stocks that are showing resilience in such market conditions. 

Amongst sectoral indices, the Nifty IT index witnessed correction and the momentum readings on the daily chart have given a negative crossover indicating that the stocks from this sector might witness some profit booking in the near term. On the other hand, the banking index needs a breakout above the 41700-41800 range which could then result in this space resuming its uptrend. 
 

How do you rate this blog?

or

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Shreya Anaokar is a Content Writer at 5paisa. She has completed her Master’s in Finance and Graduation in Statistics from the University of Mumbai. 

Disclaimer

Investment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.
Open Free Demat Account
Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest Blogs
How to check the allotment status of SignatureGlobal India IPO

SignatureGlobal India Ltd IPO gets a modest to healthy response

  • Sep 22, 2023
How to check the allotment status of Sai Silks Kalamandir IPO

The ₹1,201 crore IPO of Sai Silks (Kalamandir) Ltd consisted of a fresh issue of ₹600 crore and an offer for sale (OFS) of ₹601 crore.

  • Sep 22, 2023
Weekly Outlook on Copper- 25-Sep-2023

Copper witnessed a significant decline of -1.3%, trading at 715, primarily due to the strengthening dollar and increasing metal inventories. LME inventories surged to their highest level since May 2022, reaching 162,900 tons.  Copper price slips lower amid higher dollar and inventory concerns

  • Sep 22, 2023