F&O watch: Nifty awaits decisive range breakout to commence next leg of rally
By Chandan Taparia
The Nifty50 index formed a Hammer candle on the daily chart as it recovered well from lower levels. Overall, it has been consolidating between 8,860 and 9,000 levels for 13 sessions now and is awaiting a decisive range breakout to commence the next leg of the rally.
Now, if the Nifty50 sustains below 8,900, then it may correct towards the next supports at 8,860 and 8,750 level but if it holds above 9,000, it would start a fresh upward move towards 9,119 then 9,250 levels.
On the options front, maximum Put open interest stood at strike price 8,900 followed by strike price 8,800 while maximum Call open interest was seen at strike price 9,000 followed by 9,200. There was significant open interest addition in most of the strike prices as the participants traded to ride the event in expectation of a gap-up or gap-down opening.
The Nifty50 index formed a Hammer candle on the daily chart as it recovered well from lower levels. Overall, it has been consolidating between 8,860 and 9,000 levels for 13 sessions now and is awaiting a decisive range breakout to commence the next leg of the rally.
Now, if the Nifty50 sustains below 8,900, then it may correct towards the next supports at 8,860 and 8,750 level but if it holds above 9,000, it would start a fresh upward move towards 9,119 then 9,250 levels.
On the options front, maximum Put open interest stood at strike price 8,900 followed by strike price 8,800 while maximum Call open interest was seen at strike price 9,000 followed by 9,200. There was significant open interest addition in most of the strike prices as the participants traded to ride the event in expectation of a gap-up or gap-down opening.
