INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaNifty50 index opened in positive but remained dull in first half of session and drifted towards 10,800 level
The index formed a Hammer candle on daily scale, which indicated that decline got bought into.
Now, it has to hold above 10,850 to extend
its move towards next crucial hurdle at 10,985 and then see a fresh leg of rally towards 11,176 levels
On downside, index has support in 10,800-10777 zone
fresh upward move towards 11,176 mark.
On options front, maximum Put open interest was at 10,500 followed by 10,000 while maximum Call OI
was at 11,200 followed by 11,000
There was fresh Put writing was at strike price 10,800 while Call writing was seen at 11,100
The option band signified a broader trading range between 10,777 and 11,100 levels.
India VIX fell 4.22 per cent to 15.32 level
VIX has to hold below 16 to get scope to surpass its immediate barrier at 10,985.
Bank Nifty managed to hold above 27,000 and witnessed
strong momentum towards 27,400
It surpassed immediate hurdle of 27,350 given its highest daily close in last three months
Now it has to hold above 27,250 to witness an upward move towards 27,500 and then 27,750 levels, while on downside, support exists at 27,000
level.
Nifty futures closed positive at 10,962 with a 0.42 per cent gain
Long buildup was seen in Escorts, Indian Bank, Bank of Baroda, Canara Bank, Union Bank, Orient Bank, Bank of India and SBI while shorts were
seen in Dabur, MM and Pidilite Industries.
(Chandan Taparia is Technical Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
