Nifty F&O data signals major support at 18K; top 2 stock ideas from Prabhudas Lilladher

Nifty weekly option chain now reflects 18000PE as major support with the highest PE writers followed by 18400PE of over 20 lakh OI shares each. The highest CE writers' exposures lie on 18600CE of over 60 lakh OI shares, followed by 19000CE with over 50 lakh OI shares. Put unwinding witnessed across various levels above 18500 and
PCR_OI at 18400 is now 1.18, which needs to be looked for going ahead under the direction.

Bank Nifty weekly option chain shows the highest PE writers active on 43000PE and then, 43500PE over 10 lakh OI shares each. CE maximum exposure lies on 44000CE with over 20 lakh OI shares, fresh additions of calls across 44000/44500CE and 46000CE levels show some stiffness in the index.

Sectoral Outlook
On a weekly basis, strong participation was witnessed all around, however, the last session witnessed the profit booking. So, a wait-and-watch scenario for now, with the banking, chemicals and fertilizer sectors showing some sort of strength to continue for the coming sessions.

Stock Updates:
Buy RBL Bank: CMP Rs 172, Target price: Rs 187-194, Stop Loss: Rs 160
Sell Aurobindo Pharma: CMP Rs 450, Target price: Rs 380-365, Stop Loss: Rs 480.

Shilpa Rout – Derivatives Lead Analyst, Prabhudas Lilladher

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