PSU Banks Trigger Nifty Rally
India’s benchmark Nifty has registered a high of 11214 today. The rally comes on the backdrop of a fantastic performance by the public sector banks. The government had announced on February 20th, that it would inject ₹48,239 crore into 12 public sector banks to accelerate the growth of the economy. Shares of PSU banks have zoomed up 12% since February 26th, 2019. Nifty PSU Index has climbed 328 points from the low of 2690 to a high of 3018 today. Currently, bulls have taken control of the market. The Call options gamma neutralized today due to a flattish opening in the morning. Going forward, Nifty must take the support of tomorrows range low to sustain the bull run. The nearest upside target for the index is 11268 approx.
Will Nifty Hit 11500?
Nifty witnessed a fantastic bull run in today’s session. Today’s rally was triggered by institutional buyers who entered the market around 11090 approx. The index opened around 11073 approx and helped neutralize the Call options gamma in the first hour of trade. The 11300 and 11400 Call options gained 114% and 193% intraday. Going forward, Nifty must take support of tomorrow’s range low. The nearest upside target for the index is around 11268 approx. On the other hand, if Nifty trades below tomorrow’s range low, it might scale down to 11104 approx.
Hourly Price Action
In the hourly session, Spot Nifty has closed around 11168 approx. The index is likely to find support around tomorrow’s hourly range low. The nearest upside target for Nifty is around 11183 approx. On the other hand, if Nifty trades below tomorrow’s hourly range low, it might scale down to 11112 approx.
Bank Nifty Options Data