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By Chandan TapariaThe Nifty50 index opened in the positive on Thursday, slipped marginally towards the 11,550 level in the morning session but closed at a fresh lifetime high of 11,620.
Supports are shifting higher gradually.
The index formed a bearish candle on the daily scale, but it has been forming higher highs and higher lows from last four sessions.
Nifty has been respecting to its rising support trend line and a hold above 11,550 could extend its move towards 11,635 and then 11,666 levels, while its medium-term support has shifted higher to 11,450 level.
On the options front, maximum Put open interest shifted to 11,500 followed by 11,300 levels, while maximum Call OI was at 11,600 followed by 11,500.
Fresh Put writing was seen at 11,600 followed by 11,500 levels while Call writing was seen at 11,600 and then 11,900 levels.
A shift in the options regime suggested extension of the upward move even as the option band signified an immediate trading band between 11,500 and 11,650 levels.
India VIX fell 1.10 per cent to 12.75 while the overall lower volatility suggested that the bulls were holding a tight grip on the market.
Bank Nifty remained under pressure for the entire session and underperformed the Nifty50 index.
It failed to surpass its immediate hurdle at 28,333 and slipped towards the 27,965 mark.
It formed a Bearish Engulfing and a Bearish Belt hold candles on the daily scale, which suggested selling pressure near its recent lifetime high mark.
If it sustains below 28,128, then more profit booking could take it towards 27,750 level, while on the upside, a major hurdle is seen at 28,333.
Nifty futures closed flat to positive at 11,596 with a marginal gain of 0.08 per cent.
Long buildup was seen in Bata India, Ajanta Pharma, Ramco Cement, Dabur, Marico and Aurobindo Pharma while shorts were seen in MGL, BPCL, Jet Airways, Titan, Indiabulls Housing Finance and Yes Bank.
(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)
