A break above 13,777 may take Nifty to 13,924

MUMBAI: The Nifty could move toward a new high of 13,924 if it breaks and sustains above the record high of 13,777.50, having come within kissing distance of it intraday on Thursday, derivative data show. Some analysts are not ruling out a dip before the market makes a tryst with a new high. Nifty’s range next week based on the 13,700 call and put value is 13,476-13,924. The index closed up 1.1 per cent at 13,749.25 at the end of the holiday shortened week.The record high of 13,777.5 was made on December 21, before the Nifty plunged to 13,131.45 during the same session on fears of a more deadly Covid variant, which spooked global markets. From there, the Nifty has recovered and hit an intraday high of 13,771.75 on Thursday. The strong closing at the end of the week suggests more strength, feel analysts like Abhishek Karande, CMT senior analyst, Reliance Securities. “There could be a dip before the market moves higher,” feels Karande. “A strong closing today means the market is consolidating in 13,131-13,777.5 before testing the band’s upper end,” said Sunil Pachisia, director, institutional sales, Pratibhuti Vinihit. “It’s important for a conclusive break above the record for the market to test newer highs.”Huge intraday put selling was witnessed at 13,700 and 13,600 strikes expiring on December 31, which underscores the bullish sentiment as sellers expect the market to remain above the put level sold minus the premium received from the put buyers. December 31 expiry Nifty options’ put call ratio was 1.49, implying more put than call selling, a bullish indicator. The rally since the March 24 low has been driven by highest-ever FII flows of ₹2.13 lakh crore in the fiscal year through December 23.

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