INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index continued its positive momentum and headed towards the 11,143 level on Tuesday
It recently surpassed the immediate hurdle at 11,080 and saw the highest-ever daily close.
The index formed a bullish candle and managed to
hold above the breakout zone
Now, it has to hold above 11,080 to extend its gains towards a lifetime time high of 11,171 and then 11,200 levels, while on the downside,
immediate supports are seen at 11,050 and then 11,000 levels.
On the options front, maximum Put open interest stood at 11,000, followed by
10,900, while maximum Call OI was at 11,200, followed by 11,100
There was significant Put writing at 11,100 whereas Call unwinding was seen at all immediate strike prices while there was fresh Call
writing at 11,200 and 11,250 levels
The option band shifted its trading range to a higher band between 11,050 and 11,200 levels.
India VIX fell 4.10 per cent to 12.47
A decline in VIX has given comfort to the bulls with a fresh breakout from the consolidation range
Rising Put-Call ratio with falling volatility suggests Put writers have taken a tight grip on the market.
Bank Nifty formed a High Wave
Long-Legged Doji candle, as it remained highly volatile but underperformed the Nifty index
It has to hold above 27,000 to witness an upward move towards 27,165 and then 27,400 levels, while on the downside, support exists at 26,800
and 26,750 levels.
In Bank Nifty, Call and Put writing was seen at all immediate strike prices as both buyers and sellers pushed it near to
the 27,000 mark.
Nifty futures closed in the positive with a 0.35 per cent gains at 11,138 level
Long buildup was seen in ACC, Arvind, Idea, TVS Motor, NIIT Tech, JSW Steel, PFC, Ambuja Cement, Amar Raja and Axis Bank while shorts were
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
