INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 opened positive on Monday and witnessed sustained buying interest till the end of session to end at 10,251
It negated the formation of lower highs and lows of last three sessions and gained around 220 points
It formed a bullish candle at the crucial support of psychologically important 10,000 mark and managed to recover the losses made in last
three sessions.
Nifty has seen a positive divergence with the technical indicators turning from deep oversold territory
Now, it has to continue to hold above the 10,180-10,200 zone to extend its bounce towards 10,333 and then 10,450 levels, while on the
downside, support exists at 10,180 and then 10,138 levels.
On the options front, maximum Put open interest was at 10,000 followed by 10,200
and 9,500 levels, while maximum Call OI was at 11,000 followed by 10,500
There was Put writing at 10,200 followed by 10,000 levels, while minor Call writing was seen at 10,400 followed by 10,200 levels.
India VIX
moved up 3.21 per cent to 19.82
Volatility is not cooling down further and that is the only concern for the market
VIX has to go down below 17-16 levels to confirm a short-term trend reversal and a decent bounceback after the sharp cut of last two
months.
Bank Nifty opened positive and witnessed buying interest throughout the session towards 25,000 level
It formed a bullish candle on a daily chart, which implies that the bulls are back in the market near major support zones
Now, it has to hold above 24,650 to extend its gains towards 25,250 and then 25,500 levels, while on the downside, major support is seen at
24,500 level.
Nifty futures closed in the positive with a gain of 2.24 per cent at 10,279
IndusInd Bank and Hexaware.
(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)
