INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index opened positive and consolidated for most part of Thursday’s session
It formed a small-bodied candle on the daily scale and has been making higher highs from last four sessions, which indicates buying interest
at lower levels.
Now, it has to hold above 10,333 to extend its upward move towards the 10,450-10,480 zone and then 10,650 while on the
downside, multiple supports are seen at 10,250 and then 10,180 levels.
On the options front, maximum Put open interest was at 10,000
followed by 10,200, while maximum Call OI was at 10,700 followed by 10,800
There was Put writing at 10,400 followed by 10,300 while Call writing was seen at 10,400 followed by 10,700
The option band signified a higher shift in the trading band with the immediate range between 10,300 and 10,600 levels.
India VIX fell 3.07
A falling VIX since last two sessions suggests some bullish price setup, but VIX has to slip below 17-16 to confirm a short-term trend
reversal and trigger a decent bounceback after the sharp cut in last two months.
Bank Nifty managed to hold above 25,000 and continued the
positive momentum towards 25,400 level
It formed a small-bodied candle on the daily scale, which suggests every decline is being bought into and followup buying is required at
Now, the index has to hold above 25,000 to extend its upward move towards the crucial hurdle at 25,500 and 25,650 levels while on the
downside major support was seen at 24,750.
Nifty futures closed in the positive at 10,413 with marginal gains of 0.14 per cent
Long buildup was seen in IGL, Bata India, Hindalco, Siemens and Indigo while shorts were seen in Exide Industries, Godrej Consumer Products,
Hexaware, Canara Bank and Ashok Leyland.
(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)
