INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 opened in the positive zone on Monday and extended gains towards the 10,774 level
The index closed above its 50-DEMA by forming a bullish hammer pattern on the daily chart, which indicates that every small decline was
being bought.
The index has been making higher lows from the last four sessions and continued its momentum after the recent consolidation
breakout above the 10,650 mark
Now, Nifty has to continue to hold above 10,650 to extend its gains towards 10,850-10,880 zone
On the downside, support exists at 10,600 level.
On the options front, maximum Put open interest was at 10,000 followed by 10,200 strikes,
while maximum Call OI was seen at 10,800 followed by 11,000 strike.
Meaningful Put writing was seen at 10,700 followed by 10,600 strike,
which indicates supports are shifting higher, whereas Call unwinding was seen at all the immediate strike with minor Call writing at 11,000
Options band signifies a broader trading range between 10,600 and 10,850 levels.
India VIX moved up by 4.93 per cent to 19.26 levels
Volatility moved up even after the upmove in Nifty
It has to cool down below 17-16 zone to get the next leg of smooth upside rally in the market.
Bank Nifty opened positive, but remained in a
It has been making higher lows, but pace of buying is getting lesser, which requires some consolidation to extend its further move
Now, it has to continue to hold above the 26,100 level to witness an upmove towards 26,500 and then 26,750 level, while on the downside
support are seen at 25,800-25,750 zone.
Nifty futures closed in the positive zone with a gain of 0.83 per cent at 10,776
Built up of long positions were seen in HCC, CG Power, SRF, Federal Bank, Ultratech Cement, IndusInd Bank, Ajanta Pharma and Dabur while
shorts were seen in Siemens, ACC, NTPC, IndiabullsHousing Finance, Bata India and ONGC.
(Chandan Taparia is Technical Derivative Analyst at
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
