INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index opened with a gap down, but witnessed sustained buying interest throughout the session on Monday before
settling near the day’s high
The index recovered sharply from the 10,396 level and formed a bullish Marubozu candle on the daily scale, which implies complete dominance
by the bulls.
The 50-pack has been making higher highs from last 11 consecutive sessions, implying continuation of the uptrend
As long as it holds above 10,480, it could extend the gains towards 10,580 and then 10,630 levels, while on the downside, supports are seen
at 10,480 and then 10,440 levels.
On the options front, maximum Put open interest stood at strike price 10,300 followed by 10,400 while
maximum Call OI was at 10,700 followed by 10,500
There was significant Put writing at strike prices 10,500 and 10,400, which support shifted higher and Call unwinding was seen at all
immediate strike prices, creating room for further rise in the market.
The options band suggests an immediate trading range between 10,450
India VIX moved up 0.51 per cent to 14.21
The VIX has to cool down to extend its positive momentum.
Bank Nifty opened in the negative but the decline got bought into and the index
managed to close comfortably above the crucial hurdle at 25,250 level
The index formed a Bullish Engulfing Candle on the daily chafrt, which means the bulls are holding the grip.
Now, the index has to hold and
sustain above 25,250 to start the next leg of upward move towards 25,500 and then 25,750 levels, while on the downside, major supports are
seen at 25,000 and then 24,750 levels.
Nifty futures closed in the positive at 10,545 with a 0.53 per cent gain
Long buildup was seen in DCB Bank, Arvind, MindTree, Ajanta Pharma, Pidilite Industries and TVS Motor, while shorts were seen in Infosys,
Shriram Transport Finance, Tata Motors, Jet Airways, Tata Communication and BEL.
(Chandan Taparia is Technical Derivative Analyst at
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
