INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index opened in the positive on Friday and managed to settle above the immediate hurdle at 10,650 after
consolidating for last nine sessions.
It has been making higher lows from last three sessions and hovering near its 50-day EMA
It formed a bullish candle on daily scale, after forming an Inside Bar in the last session and a bullish Pin Bar on the weekly scale
The candle formation suggests the decline is being bought into and the bulls are gaining an upper hand in the market
Now, it has to hold above 10,650 to witness an upward move towards 10,750 and then 10,800-10,850 zone, while on the downside, support exists
at 10,550 level.
On the options front, maximum Put OI was at 10,000 followed by 10,200 level while maximum Call OI was at 10,800 followed by
There was Put writing at 10,600 followed by 10,700 levels, while Call writing was seen at 10,800 followed by 10,700 levels, which can
restrict the upside momentum
The Options band signified an immediate trading range between 10,550 and 10,800 levels.
India VIX fell 0.54 per cent to 18.35 and volatility
is narrowing down since last three sessions
VIX has to cool down below the 17-16 zone to get the next leg of smooth upside rally in the market.
Bank Nifty opened flat and witnessed
buying interest towards 26,300 level
It has been making higher highs from last trading sessions and recently saw a breakout of the consolidation range above the 25,900-26,000
The index formed a bullish candle on the daily as well as weekly scale and indicated that the bulls are holding a grip on the market.
Now,
it has to hold above the 26,000 mark to extend its move towards 26,500 and then 26,750 levels, while on the downside, support is seen in the
25,800-25,750 zone.
Nifty futures closed positive at 10,690 with a gain of 0.56 per cent
Repco Home, NMDC, YES Bank, Indiabulls Housing Finance and Reliance Infra.
(Chandan Taparia is Technical Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
