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By Chandan TapariaThe Nifty50 index remained consolidative in a narrow range of 30 points in first half of Thursday’s session, but witnessed some momentum in the latter part as it extended gains towards the 11,090 mark.
However, the index formed a small bearish candle on the daily scale, as it closed below its opening level, but managed to hold above 11,000 mark for the second consecutive session.
Now, it has to hold above 10,985 to extend its move towards 11,118 and then 11,200 levels, while on the downside, support exists at 10,985 and then 10,929 levels.
On the options front, maximum Put open interest was at 11,000 followed by 10,800 levels, while maximum Call OI was at 11,500 followed by 11,200 levels.
There was Put writing at 11,000 followed by 10,800 levels, while Call writing was seen at 11,200 followed by 11,300 levels.
The option band signified a trading range between 10,888 and 11,200 levels.
India VIX fell 2.03 per cent to 15.29 level.
Now, it has to hold below the 16-15 zone to get the smooth ride in the market.
Bank Nifty relatively outperformed the benchmark and witnessed strong momentum in the latter part of the session to extend its gain towards 27,800 level.
It continued to form higher highs and lows for the past four sessions and formed a bullish candle on the daily scale.
Now it has to hold above 27,500 to witness an upward move towards 28,000 level, while on the downside support exists in the 27,350-27,200 zone.
Nifty futures closed in the positive at 11,093 level, with a marginal gains of 0.06 per cent.
Long buildup was seen in NHPC, Allahabad Bank, Tata Elxsi and Arvind, while shorts were seen in Tata Chemical, Biocon, ONGC and Oil India.
(Chandan Taparia is Technical Derivative Analyst at MOFSL.
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
