F&O Manual | Nifty continues to rise for the second day, although 19,300 represents resistance

 F&O Manual | Nifty continues to rise for the second day, although 19,300 represents resistance

The market's breadth is skewed significantly in favor of winners, with almost two equities rising for every one that dropped.

On November 3, the benchmark Nifty 50 got off to a strong start and quickly broke above the 19,250 barrier thanks to encouraging global indications. The anticipation that the US Federal Reserve would cease its rate-hike program is being factored into global markets, which has further strengthened the mood by lowering US bond rates.

"The trading theme revolves approximately the Fed Chairman Jerome Powell's dovish feedback on which the Street is now betting that the Fed, and these has raised rates 11 times throughout the past two years to the highest levels in over a two-decade span, is unlikely to agree on an additional hike ," said Prashanth Tapse, Senior VP (Research

Sentiment would also be improved by declining petroleum prices and US Treasury rates falling for a third day in a row.

The Nifty was up 112.90 points, or 0.59 percent, at 19,246.20, while the Sensex was up 341.67 points, or 0.53 percent, at 64,422.57, at midday. The market's breadth was also favorable, with 2,164 shares rising, 943 falling, and 98 staying the same.

Strong call writing was seen near the 19,300 strikes, indicating that selling pressure from that level may limit the Nifty's rise. Early in the session, the Nifty gave way below 19,250 as it approached its immediate resistance level of 19,300, retracing its gains from the day's high.

Bulls are struggling to preserve a large portion of the Nifty's gains on the downside, as put writers were most active around 19,200, followed by 19,250, and 19,150 strikes, suggesting that the likelihood of a reversal is still low.

The headline index will trade with a bullish tilt, according to brokerage company IIFL Securities, as put writing at the 19,200 strike has increased.

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Conversely, the company views 19,050 as a solid support and 19,550 as a solid barrier on the upside.

Regarding specific equities, Dr Lal Pathlabs increased its long holdings after the business's impressive quarterly results. The company plans to expand by double digits in FY24. Apollo Hospitals, Delta Corp, and Container Corp of India were among the other counters that had lengthy adds.

A covering of short positions in Gujarat Gas, LIC Housing Finance, Indraprastha Gas, as well as Navin Flourine was prompted by improved margin performance.

Among the names with a surge in short holdings were Cholamandalam Finance and Chambal Fertilizers.