INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaNifty opened in the negative on Tuesday but managed to recover from its crucial support at 10,333 and headed towards
It had a volatile election result day, but formed a bullish candle by engulfing the decline of last session to reclaim the 10,550 level.
The
index has negated the formation of lower highs of last five sessions and needs to hold above 10,500 to witness an upward move towards 10,650
and then 10,777 levels, while on the downside, major support exists at 10,450 and then 10,333 levels.
On the options front, maximum Put open
interest was at 10,000 followed by 10,200 while maximum Call OI was at 11,000 followed by 11,500
There was Call writing at 10,600 while Put writing was seen at 10,400 followed by 10,200 levels
The options band signified a broader trading range between 10,333 and 10,777 levels.
India VIX fell sharply by 12.21 per cent to 17.94 level
A sharp cut in VIX after the election results suggests the market could not see some consolidation but VIX has to go down below 17-16 zone
to again attract buying interest.
Bank Nifty formed a Bullish Belt Hold candle on the daily scale and recovered from its intraday low of
The index managed to reclaim its 50-day EMA and requires a decisive hold above 26,000 to extend its bounce towards 26,350 and then
26,500-26,666 zone, while on the downside supports are seen at 25,750 and then 25,500 levels.
Nifty futures closed positive at 10,583 with a
Long buildup was seen in Colgate-Palmolive, SRF, Bata India and MM Finance while Shorts were seen in Chola Finance, HPCL, ICICI Bank and
Torrent Pharma.
(Chandan Taparia is Technical Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
