F&O Cues for Thursday, September 5, 2024
The Indian equity market witnessed profit-taking on Wednesday, September 4, 2024, in line with global trends. The Nifty 50 index snapped its 14-day winning streak, falling by 0.4% to close at 25,248. The Bank Nifty index also declined by 0.4%.
Nifty 50: The daily chart shows a bullish belt hold candle at the breakout point of a rounded bottom pattern, indicating strength. Support is seen at 25,000-25,100 levels, while resistance is at 25,500-25,600 levels.
The index needs to hold above 51,060 for a 'buy on dips' strategy. Resistance is seen at 52,000, which corresponds to the double bottom pattern target.
Nifty 50: The options market indicates a bearish bias, with significant open interest at the 25,000 Put and 25,300 Call. The Put-Call Ratio (PCR) has dropped to 0.82, reinforcing the dominance of call writers.
The options market shows significant open interest at the 51,400 Call and 51,300 Put. The PCR has edged up to 0.88, reflecting a sideways to bearish sentiment.
FIIs: Net sellers in index futures for the third straight day, liquidating about a third of new positions added in the preceding two trading sessions.
Positions in index futures remain unchanged at 0.7.
Long Buildup: Berger Paints, JK Cements, IndiaMart InterMesh, Biocon, and Pidilite Industries.
Tata Chemicals, RBL Bank, Wipro, ABB India, and Coal India.
Aditya Birla Fashion & Retail, Balrampur Chini, Hindustan Copper, and RBL Bank are under the F&O ban period today.