INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 had a volatile Budget day on Friday but finally managed to hold its gains for the second consecutive
It witnessed strong momentum in midway through the session but remained volatile as it failed to cross the crucial hurdle at 10,985 level
The index formed a High Wave candle with a wide range of 170 points, which suggests a tug of war to break the range as dips got bought into
even as the hurdles remained intact at higher levels.
The index has seen been making higher highs and lows from last three sessions and
needs to hold above 10,820 to extend its move towards 10,985 mark and then start a fresh leg of the rally towards 11,080 level.
On the
downside, support exists at 10,777 and then 10,700 levels
Nifty formed a bullish candle on the weekly scale with a long lower shadow, but still got stuck in a broader trading boundary.
On the
options front, maximum Put open interest was at 10,700 followed by 10,400 levels, while maximum Call OI was at 11,000 followed by 11,200
Call writing was seen at 11,200 followed by 11,100 level, while there was Put writing at 10,800 followed by 10,900 level
The option band signified a wider trading range between 10,500 and 11,000-11,200 zone at being the beginning of February FO series.
India
VIX fell sharply by 8.18 per cent to 15.72 level
It corrected 11.14 per cent this week, which is providing some comfort to the bulls, but it needs to hold below the 16 mark to get a
decisive range breakout above 10,985.
Bank Nifty remained under pressure, as it failed to hold above 27,500 level and drifted towards the
The index formed a bearish candle on the daily chart and a long-legged Doji on the weekly scale, which indicated the absence of follow-up
The index has to cross and hold above 27,150 to witness an upward move towards 27,350 and then 27,500 levels, while on the downside, support
exists at 26,850 and then 26,666 levels.
Nifty futures closed in the positive at 10,918 level with a gain of 0.57 per cent
Long buildup was seen in Hero MotoCorp, Jubilant Foodworks, Ashok Leyland, Havells, Divi’s Labs, Maruti and Escorts while shorts were seen
in Vedanta, SBI, DHFL, Hindustan zinc, MFSL and Bank India.
(Chandan Taparia is Technical Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
