INSUBCONTINENT EXCLUSIVE:
rose towards 11,680 level
It formed a Bullish Candle along with an Inside Bar or Harami pa ttern on the daily scale, which indicated that every selloff is being
bought into while the upside barriers are also visible in the market.
The index has been consolidating between 11,550 and 11,750 levels for
last eight sessions and requires a decisive range breakout to commence the next leg of rally
towards 11,888 levels, while on the downside support is intact at 11,550 level.
On the options front, maximum Put open interest was at
11,000 followed by 11,500 levels, while maximum Call OI was at 12,000 followed by 11,800 levels
Call unwinding was seen at all immediate strike prices while there was Put writing at 11,600 followed by 11,300
The option band signified an immediate trading range in between 11,550 and 11,800 levels.
India VIX moved by a sharp 0.65 per cent to 20.28
A sudden spike in VIX indicated limited upside with volatile swing in the market.
Bank Nifty formed a Harami pattern and has been
consolidating between 29,700 and 30,250 levels from last four sessions
Now it has to cross and hold above 30,250 level to witness an upward move towards 30,500 and then 30,650 levels while on the downside major
support is seen at 29,700 level.
Nifty futures closed positive at 11,746 level with a gain of 0.62 per cent
Long buildup was seen in Torrent Pharma, Canara Bank, Chennai Petro and Wipro while shorts were seen in Ceat, Asian Paints, Apollo Tyres and
NBCC.
(Chandan Taparia is Technical Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
