INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index got stuck in a broader range in between 10,700 and 10,835 levels since last nine sessions
It failed to hold above 10,800 and formed a contradicting pattern, indicating that the bulls and the bears are not ready to give up.
The
index had formed a Doji candle or a Pin Bar last week but failed to hold above the same and again got stuck in a range
Now, it requires a decisive range breakout above 10,835 or below 10,700 to commence the next leg of rally.
If Nifty manages to hold above
10,835, only then an upward move could be seen towards 10,888 and then 10,929 levels, while a drift below 10,700 level may take it towards
10,660 and 10,620 levels.
On the options front, maximum Put open interest was at 10,700 followed by 10,600, while maximum Call OI was at
11,000 followed by 10,800 and 10,900 levels
There was Put writing at 10,650 and 10,700, while Call unwinding was seen at strike prices 10,800 and 10,900
Options data suggested an immediate trading range between 10,700 and 10,835 levels.
India VIX moved up 1.73 per cent to 12.80 level.
Bank
Nifty closed flat as the decline got bought into with the support near 26,500 levels
The index got stuck in a broader range between 26,250 and 26,800 levels from last 14 sessions
It has to hold above 26,500 to witness an upward move towards 26,750-26,800 zone, while a hold below 26,450 could see it a dip towards
26,250 level.
Nifty futures closed flat at 10,757
Long buildup was seen in TCS, Yes Bank, HDFC, Hexaware, Maruti, MM Financial, Bharat Financial and Ambuja Cement while shorts were seen in
Havells, Adani Power, TVS Motor, Tata Power, Shriram Transport Finance, RCom, Motherson Sumi.
(Chandan Taparia is Technical Derivative
Analyst at Motilal Oswal Securities
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
