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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 per cent to 19.19.
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 higher levels.
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)
