INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaNSE Nifty opened gapup for a second consecutive session on Friday and headed towards the 12,100 level
The index has gained 265 points to 12,098 in three straight sessions of gains
It formed a bullish candle on the daily scale today and formed higher highs and higher lows from the second session.
The index, which formed
a strong bullish candle on the weekly scale, is just 72 points away from its lifetime high of 12,158, and a small followup could extend the
Now, Nifty has to hold above the 12,035 zone to extend momentum towards 12,250-12,300 zone, while on the downside, support exists at 12,000
and then 11,950.
On the monthly options front, maximum Put open interest was at 12,000 followed by 11,500 strike, while maximum Call OI is
at 12,000 followed by 12,200 strike
We witnessed major Put writing at 12,000 and 12,100 strikes, while Call unwinding was at 12,000 and 11,900 strikes
Option data suggests a wider trading range between 11,900 and 12,200 levels for the next coming weeks.
India VIX fell 0.37 per cent to the
Lower volatility could continue to provide support to the index to attract fresh buying interest.
Bank Nifty continued its positive momentum
for a third session and headed towards the 32,100 level
The index is near its lifetime high after forming a bullish candle on daily and weekly scales
The banking index has seen strong recovery of 1,100 points in the last three sessions from 31,000 to 32,100, and regained the price
consolidation of the last couple of sessions
The index formed a bullish setup and a hold above 31,700 could take it towards 32,157 and then 32,500
On the downside, important support exists at 31,400.
Nifty futures gained 1.02 per cent to the 12,151 level
Builtup of long positions were seen in Tata Elxsi, Mindtree, Tata global, Hindalco, Motherson Sumi, Union Bank of India and Tata Motors
while shorts in Apollo Hospital, Jindal Steel, Indigo, Bharti Airtel and Dr Reddy’s.
(Chandan Taparia is Technical - Derivative Analyst at
Investors are advised to consult financial advisers before taking an investment calls based on these observations)