INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe NSE benchmark Nifty on Friday opened gap-up and witnessed sustain buying interest till the end of the session
It formed a bullish candle on daily and weekly scale by surpassing immediate hurdle of 10,785 zone.
The index has given a decisive close
above the 10,800 zone after consolidating between 10,600 and 10,785 levels in the last 10 trading sessions.
It continued to form higher
are gradually shifting higher.
Now, the index has to hold above 10,785 zone to extend its move towards 10,888, and then 10,950 zones, while
on the downside supports are seen at 10,725-10,680 levels.
On the option front, maximum Put open interest is at 10,500 followed by 10,600
strike, while maximum Call OI is at 11,000 followed by 10,800 strike
We have seen meaningful Put writing at 10,700 followed by 10,600, which is shifting its support to higher zones, while marginal Call writing
is seen at 11,050 then 10,800 strikes
Option data suggests an immediate trading range between 10,700 and 10,900 zones.
India VIX fell down by 3.07 per cent to 13.97
Decline in VIX suggests that participants are not much worried from the outcome of the Karnataka election result
However VIX is near to comfort zones of 13.50 and post the event OTM option can decline sharply because of dip in volatility.
Bank Nifty
continued its positive momentum and headed towards 26,400 zones
It formed a bullish candle on the daily scale and have been making higher highs-higher lows for the past three trading sessions
Now, till it holds above 26,100 zones, it can extend its move towards 26,750-26,850 zones, while on the downside, supports are seen near to
Builtup of long position were seen in PTC, Asian Paint, UBL, Indiabulls Housing Finance, GAIL, Concor, Pidilite Industries and Tata
Chemicals while shorts were seen in Just Dial, ACC, Ambuja Cements, Idea, Mindtree, Bharti Airtel, Sun Pharma, DCB Bank and OFSS.
(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)
