INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index opened in the positive and hit a new record lifetime high of 11,760 on Tuesday
It formed a Doji candle on the daily scale, but managed to hold the gains for the entire session
It has been respecting its rising channel and a support trend line, which confirms its bullish momentum.
Now, it has to hold above 11,666 to
extend its move towards the 11,777-11,800 zone, while medium-term support is shifting higher to 11,620 level.
On the options front, maximum
Put open interest was at 11,500 followed by 11,700, while maximum Call OI shifted higher to 11,800 from 11,700
There was significant Put writing at 11,700, followed by 11,750, while Call unwinding was seen at all strike prices with fresh Call writing
at 11,850.
India VIX moved up 1.51 per cent to 12.42, however overall lower volatility suggests the bulls are likely to hold a tight grip on
the market.
Bank Nifty hit a new lifetime high of 28,388, but failed to close above the crucial 28,333 mark
It formed a Doji candle on the daily scale, which suggests the bears are putting pressure at higher levels while every decline is getting
Now, a decisive move above 28,333 could trigger a fresh rally towards 28,500 and then 28,700 levels, while support is seen at 28,128 and
then 28,000 levels.
Nifty futures closed in the positive at 11,757 with a gain of 0.44 per cent
Long buildup was seen in Piramal Enterprise, Hindalco, JSW Steel and HDFC while shorts were seen in GAIL, BOB, Yes Bank and Ambuja
Cement.
(Chandan Taparia is Technical Derivative Analyst at Motilal Oswal Securities
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
