INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index managed to recover the entire losses of Thursday’s session and closed above the crucial 50-day EMA
It formed a strong Bullish Candle on the daily scale and a Hammer Candle on the weekly chart, which suggest the decline got bought into.
As
long as the Nifty50 holds above 10,660 level, it could extend the gains towards 10,770 and then 10,835 levels, while on the downside
supports are seen at 10,660 and then 10,620 levels.
On the options front, maximum Put open interest stood at 10,600 followed by 10,500 while
maximum Call OI was at 11,000 followed by 10,800
Significant Put writing was seen at strike price 10,600 followed by 10,700, while Call writing was seen at 11,000 and then 10,800.
The
options band signified a trading range between 10,650 and 10,800 levels
Maximum Put open interest was near the index level, which showed that participants were not expecting dips even after the strong selloff for
most part of the week.
India VIX fell 7.26 per cent to 12.93 level.
Bank Nifty finally negated the formation of lower lows on the daily
scale after four sessions, but underperformed the broader index
It formed a Doji candle on daily scale and a bearish candle on weekly scale, which suggested limited upside
As long as it remains above 26,250, the Nifty could extend its gains towards 26,500 and then 26,750 levels, while on the downside, crucial
supports are seen at 26,250 and then 26,100 levels.
Nifty futures closed in the positive with a gain of 1.12 per cent at 10,689
Long buildup was seen in all sectors, including FMCG, metals and oil gas.
(Chandan Taparia is Technical Derivative Analyst at Motilal
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
