INSUBCONTINENT EXCLUSIVE:
By Chandan Taparia The Nifty50 index formed an Inside Bar pattern on the daily scale on Tuesday, as it traded within the trading range of
It formed a small Hammer candle with support near its 50-day EMA.
Now it has to hold above 10,660 to witness an upward move towards 10,770
and then 10,835 levels, while on the downside, supports are seen at 10,600 and 10,550 levels.
On the options front, maximum Put open
interest was seen at 10,600 followed by 10,500, while maximum Call OI was at 11,000 followed by 10,800
There was Put writing at 10,600 followed by 10,700, while Call unwinding was seen at all immediate strike prices.
The option band signified
an immediate trading range between 10,600 and 10,750 levels.
India VIX fell 2.77 per cent to 13
Lower volatility indicated limited downside and that every decline is being bought into.
Bank Nifty formed a Doji candle and remained dull
in a broad trading range of 150 points
It has been making lower high for last six sessions and needs to negate this pattern to cheer the bulls.
Now it has to hold above 26,250 to
witness an upward move towards 26,500, while on the downside support exists at 26,100 and then 25,950 levels.
Nifty futures closed in the
positive with a 0.69 per cent gain at 10,731 level
Long buildup was seen in JustDial, KPIT, Tata Elxsi, Cipla, Exide Industries, Tata Global, Divi’s Labs and Ajanta Pharma while shorts were
seen in Vedanta, OFSS, Canara Bank, Bharti Infratel and Colgate-Palmolive.
(Chandan Taparia is Technical Derivative Analyst at Motilal
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
