INSUBCONTINENT EXCLUSIVE:
By Chandan Taparia The Nifty50 index had a volatile, roller-coaster ride on Tuesday, as it traded in a wide range of 200 points with a
high wave swing from 10,880 to 11,080 levels.
The index witnessed a strong recovery in the last hour of the session and closed in the
positive after declining in last five sessions
losses.
Now, it has to cross and hold above 11,080 level to witness a bounceback towards 11,171 level, while on the downside, supports are
seen at 10,980 and then 10,929 levels.
On the options front, maximum Put open interest was at 11,000 followed by 10,800 while maximum Call
OI was at 11,200 followed by 11,500
There was Put writing at 11,000 followed by 10,800 while Call unwinding was seen at all the immediate strike prices
The option band signified a wider trading range between 10,850 and 11,171 levels.
India VIX fell 4.30 per cent to 16.68.
Bank Nifty formed a
Piercing Line pattern, as it recovered from its low of 24,678 to 25,400 level
It has been making lower top and lower bottom from last six sessions
Now a negation of the same could trigger a short covering or a bounceback
The index has to hold above 25,000 to witness an upward move towards 25,650 and then 26,000 levels, while on the downside, support is seen
at 24,750 level.
Nifty futures closed in the positive at 11,097 with a gain of 0.90 per cent
Long buildup was seen in Bharat Financial, Axis Bank, MM Finance, Ambuja Cement, Infosys and UBL while shorts were seen in PowerGrid,
Muthoot Finance, Arvind, BoB, Gail, Indiabulls Housing Finance, Ceat and CAPF.
(Chandan Taparia is Technical Derivative Analyst at Motilal
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
