INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index continued its positive momentum and made a new record lifetime high of 11,366 on Tuesday.
The index has
been making higher highs and higher lows for last eight sessions and every small decline is getting bought into.
Now, it has to continue to
hold above 11,300 level to extend its move towards 11,400 and then 11,500 levels, while on the downside, major support exits at 11,250 and
11,171 levels.
On the options front, maximum Put open interest was at 11,000 followed by 112,00, while maximum Call OI was at 11,500
There was Put writing at 11,000 and 11,200, whereas Call writing was seen at 11,400 followed by 11,700.
India VIX fell 0.79 per cent to
Overall lower volatility suggests the bulls are holding a tight grip on the market.
Bank Nifty formed an Inside Bar pattern
It got stuck between 27,651 and 27,839 even as it continued to form higher lows for last six sessions
Now, it has to continue to hold above 27,650 to extend its move towards 28,000 and then 28,250 levels, while on the downside major supports
exist in the 27,500-27,400 zone.
Nifty futures closed in the positive with a gain of 0.32 per cent at 11,375
Long buildup was seen in IGL, Torrent pharma, Apollo Tyre, BEL, Exide Industries, Dabur, Amar Raja Battery, Reliance Industries and Adani
Ports while shorts were seen in Bank of India, Eicher Motor, OIL, Oriental Bank of Commerce, Andhra Bank, Idea and Allahabad Bank.
(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)
