INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index continued to form higher lows for the fourth consecutive session and headed towards the 10,816 mark on
However, it closed in the positive after slipping around 50 points from higher levels to close at 10,770.
Absence of followup buying was
visible in the market amid sustained supply near the hurdle area
Now, Nifty has to hold above 10,777 to extend its move towards 10,835 and then 10,888 levels, while a drift below 10,740-10,735 zone could
drag it towards 10,700 and then 10,660 levels.
On the weekly scale, the index formed an Inside Bar and a Hammer candle
At the same time, it has been forming lower highs from last three weeks.
On the options front, maximum Put open interest stood at 10,600
followed by 10,700 while maximum Call OI was at 10,800, followed by 11,000
There was Put writing at strike prices 10,700 and 10800, while Call writing was seen at 10,800
The options band signified an immediate trading range between 10,660 and 10,835 levels.
India VIX fell 1.11 per cent to 12.45
The VIX has been falling since last four sessions and lower volatility indicated limited downside in the market till it remains below the
13.50 mark.
Bank Nifty formed a high wave Long-Legged Doji candle on the daily scale and finally closed near the 26,500 mark
Now, it has to hold above 26,500 to witness an upward move towards 26,750, while a hold below 26,400 could drag it towards 26,250 and then
Bank Nifty has got stuck between 26,000 and 26,800 levels since last 24 sessions and requires a decisive range breakout to commence the next
leg of rally.
Nifty futures closed in the positive with a gain of 0.20 per cent at 10,773
Long buildup was seen in Bajaj Auto, Dish TV, MM, HCL Tech, Tata Motors DVR, Allahabad Bank and Hero MotoCorp while shorts were seen in
Apollo Hospital, Godrej Industries, OFSS, NIIT Tech, TechM, Jubilant Foodworks and Titan.
(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)
