INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaNEW DELHI: The Nifty50 index opened with a gap up, but failed to hold above 10,888 and remained consolidative with support
The index closed marginally positive, but formed a Bearish Candle, as it slipped from higher levels.
While it continued to form higher lows
on the daily scale, but absence of followup buying at higher level was clearly visible
Now it has to hold above 10,770 to extend its move towards 10,888 and then 10,929 levels, while major supports are shifting higher to 10,777
and then 10,720 levels.
On the options front, maximum Put open interest was at 10,700 followed by 10,600 while maximum Call OI was at 11,000
There were significant Put activities at 10,800 and 10,700 levels while Call writing was seen at 11,100 and 11,000 levels
Options data suggested that supports have gradually shifted higher and the immediate trading range for the next few sessions is likely to be
between 10,750 and 10,950 levels.
India VIX fell 1.65 per cent to 12.52 level.
Bank Nifty remained rangebound for most part of the session,
but the trading range shifted slightly higher towards its immediate hurdle at 26,750 level
The index formed a Bearish Candle on the daily scale, but has been respecting its rising support trend line formed by connecting the swing
lows of 24,753, 25,662, 25,668 and 26,069 levels
Now the index has to hold above 26,500 to witness an upmove towards 26,750 and then 27,000 levels, while on the downside, immediate support
is seen at 26,250 level.
Nifty futures closed flat to positive with a marginal gain of 0.09 per cent at 10,849
Long buildup was seen in Dish TV, KSCL, Page Industries, SBI, Dr Reddy’s, Colgate-Palmolive, NIIT Tech, Cipla and BPCL while shorts were
seen in Voltas, Glenmark, Engineers India, SRF and Jubilant Foodworks.
(Chandan Taparia is Technical Derivative Analyst at Motilal Oswal
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
