Bank Nifty Hits Record High, Strong Put Writing Signals Support at 52,800-53,000 Strikes

Tanushree Jaiswal

Last Updated: 3rd July 2024 - 03:32 pm

Indian benchmark indices surged today, driven by a 3% rise in HDFC Bank. This increase follows the development that HDFC Bank's weight in the MSCI EM Index, currently around 3.8%, could increase to 7.2-7.5% after the index's rebalancing in August.

At 11:20 am IST, the Bank Nifty was trading around 53,022, up 850 points or 1.66% on expiry day, while the Nifty was up 143.20 points or 0.59%, at 24,267.00. Approximately 2,154 shares advanced, 1,146 shares declined, and 89 shares remained unchanged.

Options data indicates significant put writing at the 53,000 level, followed by 52,800 and 52,500 levels, suggesting these levels are strong support. According to Sudeep Shah, DVP and Head of Technical and Derivative Research at SBI Securities, "Call unwinding from 52,700-53,000 strikes and fresh put writing in 52,800-53,000 strikes imply support for the Banking Index."

Shah notes that as long as the 52,700-52,800 levels hold, we could see an acceleration of the current upmove in Bank Nifty, potentially reaching 53,450-53,700.

Arun Kumar Mantri, Founder of Mantri Finmart, believes that Bank Nifty is on the verge of a breakout on the daily charts and appears strong enough to extend gains towards 53,400 in today's trade. "The overall trend of the index seems to be bullish as long as it holds above 52,800 on a closing basis on the technical charts," said Mantri.

Also read Sensex Crosses 80,000 for the First Time, Nifty Reaches New Peaks; HDFC Bank Gains on Positive Global Cues

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