INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index drifted lower in opening trade on Friday but managed to attract buying interest and witnessed strong
momentum in last hour of trade to head towards the 11,600 mark
It has been forming Hammer candles from last three sessions, which indicates that every decline is being bought into
The index started forming higher highs and higher lows after the weakness seen in the first two sessions of the week
Now it has to hold above 11,550 to extend its bounce towards 11,620 and then 11,666 levels, while on the downside, supports are seen at
11,500 and then 11,450 levels.
On the options front, maximum Put open interest was at 11,500 followed by 11,400 while maximum Call OI was at
11,800 and then 11,600 and 12,000 levels
Call unwinding was seen at all immediate strike prices, while there was Put writing at strike price 11,500 followed by 11,400.
India VIX
moved up 1.24 per cent to 13.89.
Bank Nifty broadly traded in the trading range of last session as it managed to attract buying interest
near the 27,230 mark and closes above the immediate barrier at 27,440
The index formed a Hammer Candle on the daily scale, which suggests every decline is being bought into
Now it has to hold above 27,440 to witness an upward move towards the 27,700-27,750 zone, while on the downside, support was seen at 27,250
and then 27,165 levels.
Nifty futures closed positive with a gain of 0.58 per cent at 11,634
Long buildup was seen in Torrent Power, Wipro, Hindalco, Aurobindo Pharma, JSPL and TVS Motor while shorts were seen in Yes Bank, Adani
Port, SBI, Allahabad Bank, Oriental Bank, Canara Bank and REC.
(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)
