Nifty F&O Outlook: Buying support near 19,600, uptrend will resume, says ICICIdirect

economictimes.indiatimes.com:

Strategy PositionsBuy 27th July Nifty 19800 Call at 105-110 & Sell 27th July 20000 Call at 38-40, Stop Loss: 5; Target: 128, Time Frame: till expiry.RationaleFII unabated buying support helped Nifty to almost test 20000 levels last week. Despite weaker-than-expected results from technology heavyweight Infosys, Nifty gained for the 4th consecutive week with gains of nearly 1%. Going ahead, we believe that ongoing positive bias should continue with elevated Nifty support near 19600 levels for the targets beyond 20000 levels in the expiry week.

FIIs net longs have increased sharply last week and moved beyond 1 lac contracts once again as they continue to accumulate stocks. We expect the trend to continue till the month's end and Nifty may end the series near life highs. Only a pause in the FII buying may hamper the ongoing momentum.

In such a scenario, Nifty is likely to find support near its series VWAP placed a tad below 19600 levels. On the options front, Call writers have gone a bit aggressive due to the sharp sell-off seen on Friday. However, Put option bases seem to be intact and no major closure was experienced at ATM 19800 strike.

Moreover, in the ongoing move seen since March, Nifty hasn’t seen a correction of over 400 points. Hence, we expect buying support to emerge once again near 19600 levels and resume the uptrend. ADD IMAGE--ATTACHED