9
By Chandan TapariaThe Nifty50 index opened with a gap up and witnessed sustained buying throughout Friday’s session.
It saw the highest day close ever and formed a bullish candle on a daily scale, followed by a bullish engulfing candle on the weekly chart, which implied that the bulls are holding a grip on the market.
As long as it holds above 10,450 level, the Nifty50 could extend its gains towards a new high at 10,500 and then 10,550 levels, while on the downside, major support is seen at 11,400 level.
On the options front, maximum Put open interest was at 11,000 followed by 11,300 while maximum Call OI was at 11,500 followed by 11,600.
Meaningful Put writing was seen at 11,400 followed by 11,500, while there was Call writing at 11,600 and 11,800 levels.
The option band signified an immediate trading band between 11,400 and 11,600 levels.
India VIX moved down 3.52 per cent to 13.16 level.
Bank Nifty opened in the positive and attracted buying interest towards the 28,178 level.
It formed a bullish belt hold candle on a daily scale, which implied there was buying at lower levels.
Now as long as it holds above 28,000, the index could extend its gains towards 28,333 and the n 28,500 levels, while on downside, supports are seen at 28,000 and then 27,750 levels.
Nifty futures closed in the positive at 11,487 with a gain of 0.67 per cent.
Long buildup was seen in Aurobindo Pharma, ACC, Grasim, Bata India, Granules, YES Bank and India Cements while shorts were seen in Federal Bank, Muthoot Finance, GAIL and Biocon.
(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)
