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By
Chandan TapariaThe Nifty50 index opened positive and remained rangebound for the most part of Friday’s session.
It formed a Hammer candle on daily chart and a small-bodied candle on the weekly scale, which implied buying on declines.
Followup action was missing on either side, as Nifty has been consolidating between 10,450 and 10,650 levels for the last entire week.
Now it has to hold above 10,450 to extend its upward move towards the 10,650 -10,750 zone, while on the downside, multiple supports are seen at 10,450 and then 10,380 levels.
On the options front, maximum Put open interest was seen at 10,000 followed by 10,200, while maximum Call OI was at 11,000 followed by 10,800.
There was Call writing at 10,800 followed by 10,700, which indicated limited upside for the market while Put writing was seen at 10,100 followed by 10,500.
The Option band signified an immediate range between 10,450 and 10,650 levels.
India VIX fell 0.64 per cent to 17.76 level.
However as long as it does not hold below 16-16.50 zone, the upside seems capped in the market.
Bank Nifty consolidated in a narrow trading range between 25,550 and 25,850 levels for the entire week.
It formed an indecisive candle on the daily as well as weekly scales, which implied that the bulls are not loosening their grip at lower levels, whereas the bears are putting pressure at higher levels.
It is hovering near its 50- and 200- DEMA for last one week and now needs to settle above 25,800 to extend its upward move towards 26,250 level, while a hold below the same level could drag it towards 25,400.
Nifty futures closed positive at 10,548 with a marginal gain of 0.05 per cent.
Long buildup was seen in Bank of India, SRF, Ceat, Divi’s Lab and STAR while shorts were seen in Indian Bank, Repco Home, Cipla and Escorts.
