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By Chandan Taparia Nifty opened flattish and remained volatile for most part of the session on Friday.
The index formed a Hammer candle on the daily scale, which indicated that the decline got bought into.
Now, the 50-pack has to hold above the 10,750-10,770 zone to extend its upward move towards the 10,888 level.
It has been making higher highs and higher lows for last four weeks and a hold above 10,750 level would be important for the index to move higher.
On the options front, maximum Put open interest was at 10,700 and 10,600, while maximum Call OI was at 11,000 followed by 10,800.
There was Put writing at strike price 10,700, followed by 10,800, while Call writing was seen at 10,800 and 11,000 levels.
Options data suggests a trading range between 10,700 and 10,900 levels.
India VIX fell 0.25 per cent 12.07 level.
Bank Nifty opened in the negative and remained under pressure throughout the session.
It formed a bearish candle on a daily scale and an Inside Bar pattern on the weekly scale, which indicated that followup was missing on either side.
The index is forming lower highs and lower lows for last three sessions, which indicates it under-performance compared with the broader index.
Now, the index has to hold above 26,500 to witness an upward move towards 26,750, while on the downside, immediate support was seen at 26,250 and then 26,100 levels.
Nifty futures closed flat to positive with a 0.05 per cent gain at 10,818.
Long buildup was seen in Torrent Pharma, Ajanta Pharma, Apollo Hospital, Dr Reddy’s Lab, Infosys, Bajaj Finance, Tata Elxsi and Britannia while shorts were seen in ICICI Bank, Concor, Coal India, UltraTech Cement, Andhra Bank, LT and Apollo Tyre.
(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)
