The Indian benchmark indices are back near intraday high levels as positive newsflow emerges from the battleground, as reports indicate Iran has agreed to hold peace talks with the US. The NIFTY50 index is trading 500 points higher at the 23,015 level, and the SENSEX jumped over 1600 points at the 74,342 level on Tuesday afternoon.
Both the indices opened nearly 2% higher on Tuesday morning and then oscillated near neutral lines.
NIFTY50 chart check
The index opened near the 20 EMA levels on the hourly charts in the initial hours, but failed to close above it. In the mid-market session, the index is trading above the 20 EMA levels of 22,871, suggesting a strong buying momentum after filling the morning gap. Experts believe the index should close above the hourly 20 EMA levels on Tuesday and sustain above it on Wednesday as well to chart the upwards journey.
NIFTY50 option strategy
The options data for today’s expiry suggest heavy open interest addition at 22,700 levels, suggesting strong support and downside protection. On the flipside, the 23,000 calls hold the highest open interest activity, indicating a near-term resistance for the index. If the index sustains above 23,000 in the closing hours, we could see further upside towards the 23,300 levels.
F&O gainers and losers
The stock-specific activity in the F&O space suggests strong buoyancy in the NIFTY50 stocks. Indigo (+4.8%), L&T(+4.7%), Eternal (+4.4%), Ultratech Cement (+4.1%) and Asian Paints (+4.1%) were the top gainers with strong long addition. Meanwhile, Dr Reddy’s (+0.1%) saw a strong short buildup on Tuesday afternoon.
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