F&O watch: Shift in Calls from 9,200 to 9,500, 9,400 levels raises hope of Nifty rallying further
By Chandan Taparia
The Nifty50 index opened positive on Monday and continued its upward move, making a new lifetime high of 9,245. It has been making higher highs and higher lows for the past five consecutive sessions and trading in the uncharted territory.
Now, if it holds above 9,191, it can extend the upward move towards 9,280 and 9,350 levels, while on the downside multiple supports are seen in the 9,150-9,133 zone.
The Nifty50 is also holding above its support trend line by connecting the lows of 8,713, 8,903 and 9,024 levels.
Premium of Nifty futures moved up to 37 points compared with 16 points in the last session. A higher base also supported the overall bullish undertone and aggression of the bulls in the market.
Nifty futures witnessed an upward move with a marginal change in open interest, which indicated short covering followed by buildup of fresh long positions.
On the options front, maximum Put open interest was seen at strike price 9,000 followed by 9,100 while maximum Call open interest stood at strike price 9,500 followed by 9,400. There was significant Put writing at strike prices 9,000, 9,100, 9,200 and 9,300 while unwinding was seen at strike price 9,200, creating scope for further upside.
A shift in highest Call congestion from strike price 9,200 to strike prices 9,500 and 9,400 has created fresh hope for market participants to ride the rally.
Now, the market will watch the RBI policy meet next week and any positive outcome may cheer the market as money flow from institutional participants was visible in the system.
Bank Nifty formed a Bullish Dragon Fly Doji on the daily chart, holding the gains with sustained buying interest. It has shifted its support to 21,250, showing strong potential to move towards 21,700 and 22,000 levels.
India VIX fell sharply by 7.47 per cent to 11.49. A drop in volatility is keeping the undertone bullish and giving strong comfort to the bulls to ride the rally.
Industry heavyweights RIL, L&T, ICICI Bank, Siemens, HDFC and ACC have seen fresh long buildup and are forming positive price patterns with positive contribution to the broader index.
(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 positive on Monday and continued its upward move, making a new lifetime high of 9,245. It has been making higher highs and higher lows for the past five consecutive sessions and trading in the uncharted territory.
Now, if it holds above 9,191, it can extend the upward move towards 9,280 and 9,350 levels, while on the downside multiple supports are seen in the 9,150-9,133 zone.
The Nifty50 is also holding above its support trend line by connecting the lows of 8,713, 8,903 and 9,024 levels.
Premium of Nifty futures moved up to 37 points compared with 16 points in the last session. A higher base also supported the overall bullish undertone and aggression of the bulls in the market.
Nifty futures witnessed an upward move with a marginal change in open interest, which indicated short covering followed by buildup of fresh long positions.
On the options front, maximum Put open interest was seen at strike price 9,000 followed by 9,100 while maximum Call open interest stood at strike price 9,500 followed by 9,400. There was significant Put writing at strike prices 9,000, 9,100, 9,200 and 9,300 while unwinding was seen at strike price 9,200, creating scope for further upside.
A shift in highest Call congestion from strike price 9,200 to strike prices 9,500 and 9,400 has created fresh hope for market participants to ride the rally.
Now, the market will watch the RBI policy meet next week and any positive outcome may cheer the market as money flow from institutional participants was visible in the system.
Bank Nifty formed a Bullish Dragon Fly Doji on the daily chart, holding the gains with sustained buying interest. It has shifted its support to 21,250, showing strong potential to move towards 21,700 and 22,000 levels.
India VIX fell sharply by 7.47 per cent to 11.49. A drop in volatility is keeping the undertone bullish and giving strong comfort to the bulls to ride the rally.
Industry heavyweights RIL, L&T, ICICI Bank, Siemens, HDFC and ACC have seen fresh long buildup and are forming positive price patterns with positive contribution to the broader index.
(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)
