INSUBCONTINENT EXCLUSIVE:
By Chandan Taparia Nifty50 opened with a marginal loss and moved up in initial trade on Friday
session.
Eventually, the index formed a small-body candle on the daily chart
It moved within the trading range of the previous session and, thus, formed an Inside Bar pattern on the daily scale, indicating
indecisiveness among market participants
The index is currently hovering around its strong hurdle of Rising Trendline on the weekly chart, which coincides with the 100 per cent
extension level of the previous up-move on the daily chart.
Though the index is trading near its resistance level, we are not seeing any
noticeable weakness in prices
Thus, traders are advised to refrain from taking pre-emptive shorts as long as the index sustains above its immediate support in the 11,280
interest was at 12,000 followed by 12,200 levels, while maximum Call OI was at 12,500 followed by 12,400 levels
There was marginal Call unwinding at immediate strike prices and some Put Writing at 12,300
Options data indicated a trading range between 12,000 and 12,500 levels.
India VIX fell marginally by 0.37 per cent to 14.12 level
VIX showed some rangebound move, which suggests the Bulls are holding a grip
We expect volatility to rise ahead of the Union Budget, 2020.
Bank Nifty started the session on a negative note and consolidated around its
key support at 31,500 level throughout the session
Eventually, it concluded the session around the opening price and formed a Doji candle on the daily chart
The banking index underperformed the benchmark indices last week and corrected about 1.58 per cent to form a red-body candle on the weekly
At this juncture, Bank Nifty is hovering around its bullish gap between 31,451 and 31,667 levels
It has to hold above 31,500 level to witness an up-move towards 32,000 and then the 32,500-32,600 zone
Major supports below the 31,500 mark is placed in the 30,900-31,000 zone.
Nifty futures closed flattish at 12,379 level
There was long buildup at MRF, Torrent Pharma, Bharti Airtel, CESC and IGL, while shorts were seen in Idea, Bharti Infratel, IDFC First,
IndusInd Bank and Motherson Sumi.
(Chandan Taparia is Technical - Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)