INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index managed to respect its 50-day EMA and extended its gains towards the 10,777 level
It formed a bullish candle on the daily scale and also formed higher lows for last two sessions.
The index closed near its falling supply
trend line by connecting the swing highs of 10,893 and 10,837 levels
If it manages to hold above 10,777, then a breakout could lead to fresh short covering, which may propel the index towards 10,835 and then
10,888 levels.
On the downside, support exists at 10,700 and then 10,660 levels.
On the options front, maximum Put open interest stood at
10,600, followed by 10,500 level, while maximum Call OI was at 11,000 followed by 10,800
There was Put writing at 10,600 followed by 10,800 level, while Call writing was seen at 10,800 and 10,900 levels
The option band signified an immediate trading range between 10,660 and 10,830 levels.
India VIX fell 2.62 per cent to 12.65
Lower volatility indicated limited downside and every decline is being bought into in this market.
Bank Nifty finally negated the formation
of lower highs on the daily scale and extended its gains towards 26,480 level
It formed a bullish candle on the daily scale with the support near its 50-day EMA
Now, it has to hold above 26,250 to witness an upward move towards 26,500 and then 26,750 levels, while on the downside, support exists at
26,250 and then 26,100 levels.
Nifty futures closed in the positive with 0.39 per cent gains at 10,766 level
Long buildup was seen in Bajaj Auto, Apollo Hospital, Lupin, Godrej Consumer Products, Granules and Maruti while shorts were seen in Shriram
Transport Finance, KPIT, Godrej Industries, LIC Housing Finance, PC Jeweller and Torrent Power.
(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)
