Technical analysts expect the Nifty to find resistance at 18,500 in the coming week after declining for four straight days last week. Analysts said the broader trend remains positive, with financials likely to outperform in the coming days but midcaps may fall further.SENIOR DERIVATIVES ANALYST - INSTITUTIONAL EQUITIES, YES SECURITIES Bank Nifty showing signs of leadership breaking above the 40,000 mark is likely to limit the downside for Nifty near the 18,000 mark. We are recommending selling Nifty strike 18,300 call and selling 18,000 put with a total combined premium in the 155-160 range. The cost of the strategy involves an outflow of Rs 4,425 which is the maximum loss if Bank Nifty trades and remains below 40,600 levels at expiry. Bank Nifty/ Nifty ratio chart gave a range breakout and showed further up move, indicating a continuation in outperformance of banking index in coming days,too.

Source: Economic Times October 25, 2021 07:05 UTC