F&O watch: Market undertone bullish, Nifty50’s major trend to remain positive
By Chandan Taparia
The Nifty50 index opened with gap up and registered a fresh lifetime high of 9,218 on Friday, but lost most of the intraday gains to close near the 9,160 level.
Overall, the index has been making higher tops and higher bottoms and supports are shifting higher from 9,075 to 9,119 level on an immediate basis.
Major market trends may remain positive as long as the Nifty50 holds above the psychologically important 9,000 mark.
On the options front, maximum Put open interest stood at strike price 8,800 followed by strike price 8,900, while maximum Call open interest was at strike price 9,200 followed by strike price 9,300.
We have seen fresh Put writing at strike prices 9,200, 9,100, 9,000 and 8,900, which is supporting the market while Call writing remained intact at strike prices 9,200, 9,250 and 9,300, causing a pause in market momentum.
The India VIX is near to its historical low and lower volatility is supporting the bullish undertone of the market.
(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)
The Nifty50 index opened with gap up and registered a fresh lifetime high of 9,218 on Friday, but lost most of the intraday gains to close near the 9,160 level.
Overall, the index has been making higher tops and higher bottoms and supports are shifting higher from 9,075 to 9,119 level on an immediate basis.
Major market trends may remain positive as long as the Nifty50 holds above the psychologically important 9,000 mark.
On the options front, maximum Put open interest stood at strike price 8,800 followed by strike price 8,900, while maximum Call open interest was at strike price 9,200 followed by strike price 9,300.
We have seen fresh Put writing at strike prices 9,200, 9,100, 9,000 and 8,900, which is supporting the market while Call writing remained intact at strike prices 9,200, 9,250 and 9,300, causing a pause in market momentum.
The India VIX is near to its historical low and lower volatility is supporting the bullish undertone of the market.
(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)
