F&O: Nifty50 needs to hold above 10,230 to get stability for next rally
ET CONTRIBUTORS|
Updated: Nov 17, 2017, 06.55 PM IST
By Chandan Taparia
The Nifty50 index opened with a gap of more than 100 points on Friday and headed towards the 10,343 level. It completed the 61.80% retracement of the entire down leg from 10,490 to 10,094 and witnessed a decline of around 50 points from higher level.
Recently, it negated the formation of lower highs and lower lows and now needs to hold above 10,230 to get stability for the next upmove towards 10,350 and then 10,400 levels, while on the downside, supports are seen at 10,178 and then 10,120 levels.
On the options front, maximum Put open interest stood at strike prices 10,200 and 10,000 while maximum Call OI was at 10,500 followed by 10,400. Significant Put writing was seen at strike price 10,300, while Call writing was seen at 10,400, 10,500 and 10,600. The option band signified a trading band between 10,200 to 10,400 over the next few sessions.
India VIX moved up 2.30 per cent to 13.77. Volatility spiked even after a decent gains of 0.67 per cent in the index, which shows that selling is being witnessed at higher levels.
Bank Nifty managed to see a consolidation breakout from the trading range between 25,100 and 25,700 and made a new lifetime high of 25,924.
Now it has to hold above 25,500 to extend its move towards 26,000 and then 26,250 levels, while on the downside, supports are seen at 25,400 and then 25,200 levels.
Nifty futures closed in the positive with a gain of 0.47 per cent at 10,298. Long buildup was seen on the counters of HDIL, Just Dial, SRF, DLF, Tata Power, ICIL, Biocon, Shriram Transport, Tata Power, Syndicate Bank, Coal India and Pidilite Industries, while shorts were seen in Hexaware, Oriental Bank, ONGC, GAIL, Reliance Infra.
(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 opened with a gap of more than 100 points on Friday and headed towards the 10,343 level. It completed the 61.80% retracement of the entire down leg from 10,490 to 10,094 and witnessed a decline of around 50 points from higher level.
Recently, it negated the formation of lower highs and lower lows and now needs to hold above 10,230 to get stability for the next upmove towards 10,350 and then 10,400 levels, while on the downside, supports are seen at 10,178 and then 10,120 levels.
On the options front, maximum Put open interest stood at strike prices 10,200 and 10,000 while maximum Call OI was at 10,500 followed by 10,400. Significant Put writing was seen at strike price 10,300, while Call writing was seen at 10,400, 10,500 and 10,600. The option band signified a trading band between 10,200 to 10,400 over the next few sessions.
India VIX moved up 2.30 per cent to 13.77. Volatility spiked even after a decent gains of 0.67 per cent in the index, which shows that selling is being witnessed at higher levels.
Bank Nifty managed to see a consolidation breakout from the trading range between 25,100 and 25,700 and made a new lifetime high of 25,924.
Now it has to hold above 25,500 to extend its move towards 26,000 and then 26,250 levels, while on the downside, supports are seen at 25,400 and then 25,200 levels.
Nifty futures closed in the positive with a gain of 0.47 per cent at 10,298. Long buildup was seen on the counters of HDIL, Just Dial, SRF, DLF, Tata Power, ICIL, Biocon, Shriram Transport, Tata Power, Syndicate Bank, Coal India and Pidilite Industries, while shorts were seen in Hexaware, Oriental Bank, ONGC, GAIL, Reliance Infra.
(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)
