F&O: Nifty data shows every decline is getting bought into
ET CONTRIBUTORS|
Updated: Oct 16, 2017, 05.44 PM IST
By Chandan Taparia
The Nifty50 index continued its momentum on Monday and hit the fresh lifetime high by closing near to 10,230. It formed a Hanging Man pattern with a long lower shadow, which indicates that every decline is being bought into. Now, the index has to hold above 10,250 to extend its upmove towards 10,300 and then 10,400, while supports shifted higher to 10,180 and then 10,150 levels.
Nifty futures closed with a gain of 0.61 per cent at 10,255. India VIX marginally moved higher by 0.42 per cent to 11.31. On the options front, maximum Put open interest stood at 10,000, followed by 9,900, while maximum Call OI is shifted to 10,200 followed by 10,300.
Significant Put writing is being seen at strike prices 10,200 and 10,150, while Call unwinding was seen at 10,000 to 10,200. Fresh Put writing with Call unwinding is shifting its support to higher zones, giving scope for fresh lifetime highs at 10,300 and 10,400 levels. Long buildup was seen in banking, metals, FMCG and auto stocks.
A rising Put-Call ratio with lower volatility suggests an overall bullish bias in the market. However, the Bank Nifty is still 500 points away from its high, while the Nifty is up by 50 points from its previous high of 10,178.
Bank Nifty underperformed the Nifty, as it closed with the marginal gains of 14 points compared with 63 points rise in the Nifty50. It has support at 24,500 while on the upside hurdles are seen at 25,000 and 25,198 levels.
(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)
The Nifty50 index continued its momentum on Monday and hit the fresh lifetime high by closing near to 10,230. It formed a Hanging Man pattern with a long lower shadow, which indicates that every decline is being bought into. Now, the index has to hold above 10,250 to extend its upmove towards 10,300 and then 10,400, while supports shifted higher to 10,180 and then 10,150 levels.
Nifty futures closed with a gain of 0.61 per cent at 10,255. India VIX marginally moved higher by 0.42 per cent to 11.31. On the options front, maximum Put open interest stood at 10,000, followed by 9,900, while maximum Call OI is shifted to 10,200 followed by 10,300.
Significant Put writing is being seen at strike prices 10,200 and 10,150, while Call unwinding was seen at 10,000 to 10,200. Fresh Put writing with Call unwinding is shifting its support to higher zones, giving scope for fresh lifetime highs at 10,300 and 10,400 levels. Long buildup was seen in banking, metals, FMCG and auto stocks.
A rising Put-Call ratio with lower volatility suggests an overall bullish bias in the market. However, the Bank Nifty is still 500 points away from its high, while the Nifty is up by 50 points from its previous high of 10,178.
Bank Nifty underperformed the Nifty, as it closed with the marginal gains of 14 points compared with 63 points rise in the Nifty50. It has support at 24,500 while on the upside hurdles are seen at 25,000 and 25,198 levels.
(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)
