INSUBCONTINENT EXCLUSIVE:
It formed a bearish candle on the daily scale followed by a Doji or a Spinning Top candle, which indicates that the bears are putting
pressure at higher levels ahead of its monthly derivatives settlement
The index has been respecting to its support trend line but at the same time it is finding hurdle at the upper band of the rising channel
Now it has to continue to hold above 11,666 to extend its move towards 11,777 -11,800 zone, while medium term support is seen at 11,620
level.
On the options front, maximum Put OI was at 11,500 followed by 11,200, while maximum Call OI shifted higher to 11,800 then 11,700
There was significant Call writing at 11,750 followed by 11,700, while Put unwinding was seen at all immediate strikes.
India VIX moved up
by 0.12% at 12.44, however overall lower volatility suggested the bulls are likely to hold the grip on the market.
Bank Nifty opened flat
and remained rangebound for most part of the session
It formed an Inside Bar and a Doji candle on the daily scale, which suggests a tug of war to surpass a major hurdle of 28,333 zone
Now a decisive move above 28,333 could see a fresh rally towards 28,500 and then 28,700 while support is seen at 28,128 and then 28,000
levels.
Nifty futures closed in the negative with a loss of 0.40% at 11,795
Long buildup was seen in Bosch, JSW Steel, PEL, MM Finance, RECand MM while shorts were seen in Marico, Infratel, Bharat Financial,
Britannia and IndiGo.
(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)
