INSUBCONTINENT EXCLUSIVE:
previous up-move from 11,929 to 12,430 level and then started rebounding
The index consolidated in the positive territory for most part of the session and formed a positive candle on the daily chart
At the current juncture, it is hovering around the 200-DEMA and the previous swing high of 11,695.
Going forward, if Nifty sustains above
However, the overall bullish sentiment got dampened, and thus, traders should not remain aggressive on the long side
On the downside, a break below its immediate support at 11,600 level may lead to further correction towards 11,500 and then 11,333
There was Put writing at 11,700 and then 11,500 levels, while minor Call writing was seen at 11,900 and then 11,800 levels
Options data indicated a lower trading range between 11,300 and 11,900 levels.
India VIX fell 6.28 per cent to 15.78 level
Volatility is likely to cool off from higher levels as the major event of Union Budget got out of the way, but the change in trend and bear
grip could keep volumes at comparative higher levels.
Bank Nifty relatively outperformed the benchmark index and formed a positive candle on
However, it continued to make lower lows for the fourth consecutive week
The banking index rebounded from its support at the 100 per cent extension level of the previous fall from 32,427 to 30,614 and managed to
close a tad above its 200 DEMA.
If Bank Nifty holds above its immediate support at 29,600 level, then we may see a bounce towards the 30,400
taking aggressive long positions.
Nifty futures closed positive at 11,714 with 0.51 per cent gains
There was long buildup in Escorts, Nestle, Bajaj Auto, Pidilite Industries and HUL; while Yes Bank, Indiabulls Housing Finance, Century
Textiles, Just Dial and LIC Housing Finance witnessed formation of shorts.
(Chandan Taparia is Technical - Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)