By Chandan Taparia The Nifty50 index opened flattish and drifted towards 10,730 level in early part of session on Tuesday, but it witnessed buying interest in second half and headed towards 10,820 mark.
It remained volatile and declines got bought into as index managed to hold above its 50-day EMA on daily scale.
Now it has to hold above 10,750-10,777 zone to witness an upward move towards 10,850 and then 10,929 levels, while on downside support exists at 10,650 and then 10,600 levels.On options front, maximum Put open interest stood at strike price 10,500 followed by 10,000, while maximum Call OI was at 11,000 followed by 11,200.
Put writing was seen at strike price 10,700 followed by 10,400 where marginal Call unwinding was seen at immediate strikes.
The options band signalled a broader trading range between 10,650 and 11,000 levels.India VIX fell 3.68 per cent to 15.70 level.
VIX needs to hold below 16 mark to again get a bounceback in market, else roller-coaster ride could continue.Bank Nifty witnessed buying interest in morning dips and headed towards 27,550 mark with its highest daily close in last four months.
It formed a bullish candle on daily scale and has been outperforming Nifty.
As long as it holds above 27,150, index can extend its gains towards 27,750 then 28,000 levels, while on downside, support exists at 27,000.Nifty futures closed positive at 10,833 with a gain of 0.27 per cent.
Long buildup was seen in UBL, SRF, Repco Home, Orient Bank, Bank India, DCB Bank, ICICI Bank and Axis Bank while shorts were seen in CEAT, KSCL, ZEEL, Hindalco and RBL Bank.(Chandan Taparia is Technical Derivative Analyst at MOFSL.
Investors are advised to consult financial advisers before taking an investment calls based on these observations)