F&O: Bank Nifty breaks out of its range, promises to lift Nifty higher
ET CONTRIBUTORS|
Jan 15, 2018, 05.19 PM IST
By Chandan Taparia
The Nifty50 index opened in the positive and made a new lifetime high of 10,782 on Monday. It formed an Inverted Hammer pattern at the top and traded near its supply trend line of the monthly chart, but the bulls were not ready to loosen their grip.
Overall, the index has been making higher top and higher bottom, and supports are gradually shifting higher. Now, it has to hold above the 10,700 level to extend its move towards 10,800 and 10,850 levels, while on the downside, supports are seen at 10,650 and 10,600 levels.
On the options front, maximum Put open interest stood at 10,500 followed by 10,600, while maximum Call OI was at 11,000 followed by 10,800. Fresh and significant Put writing was seen at strike prices 10,700, 10,800, 10,750 and 10,600, which is shifting its support, while fresh Call writing at 10,800 could act as an immediate hurdle.
The option band signified a trading band between 10,650 and 10,850 levels.
India VIX moved up 4.19 per cent to 14.30. The VIX has to hold below 13 mark to continue its positive and smooth ride in the market.
The Bank Nifty saw a breakout of the consolidation range by surpassing its previous lifetime high of 25,953 and made a new high of 26,091. It formed a strong bullish candle and needs to hold above 25,750 to extend its move towards 26,200 lavel.
On the weekly chart, maximum Put open interest stood at 26,200 followed by 26,000, while Put writing was seen at all strike prices from 25,500 to 26,000 levels.
Bank Nifty formed a Hammer candle on the daily chart and managed to close near the 25,750 level. It has been underperforming the Nifty index and got stuck in a range between 10,500 and 10,800 levels for last six sessions. Now, it has to sustain above 25,650 to see a move towards 25,950 level, while on downside, supports are seen at 25,500 and then 25,400 levels.
Nifty futures closed in the positive a 0.55 per cent gain at 10,745. Long buildup was seen in HDFC, PC Jeweller, Kotak Bank, ICICI Bank, HDFC Bank, Exide Industries, ACC, M&M Finance, Titan, UltraTech Cement, Grasim and India Cement, while shorts were seen in Eicher Motors, Hero MotoCorp, IndusInd Bank, Bajaj Finance, GAIL, IDFC, OIL, Petronet LNG, Tata Motors DVR and Bharti Infratel.
(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 in the positive and made a new lifetime high of 10,782 on Monday. It formed an Inverted Hammer pattern at the top and traded near its supply trend line of the monthly chart, but the bulls were not ready to loosen their grip.
Overall, the index has been making higher top and higher bottom, and supports are gradually shifting higher. Now, it has to hold above the 10,700 level to extend its move towards 10,800 and 10,850 levels, while on the downside, supports are seen at 10,650 and 10,600 levels.
On the options front, maximum Put open interest stood at 10,500 followed by 10,600, while maximum Call OI was at 11,000 followed by 10,800. Fresh and significant Put writing was seen at strike prices 10,700, 10,800, 10,750 and 10,600, which is shifting its support, while fresh Call writing at 10,800 could act as an immediate hurdle.
The option band signified a trading band between 10,650 and 10,850 levels.
India VIX moved up 4.19 per cent to 14.30. The VIX has to hold below 13 mark to continue its positive and smooth ride in the market.
The Bank Nifty saw a breakout of the consolidation range by surpassing its previous lifetime high of 25,953 and made a new high of 26,091. It formed a strong bullish candle and needs to hold above 25,750 to extend its move towards 26,200 lavel.
On the weekly chart, maximum Put open interest stood at 26,200 followed by 26,000, while Put writing was seen at all strike prices from 25,500 to 26,000 levels.
Bank Nifty formed a Hammer candle on the daily chart and managed to close near the 25,750 level. It has been underperforming the Nifty index and got stuck in a range between 10,500 and 10,800 levels for last six sessions. Now, it has to sustain above 25,650 to see a move towards 25,950 level, while on downside, supports are seen at 25,500 and then 25,400 levels.
Nifty futures closed in the positive a 0.55 per cent gain at 10,745. Long buildup was seen in HDFC, PC Jeweller, Kotak Bank, ICICI Bank, HDFC Bank, Exide Industries, ACC, M&M Finance, Titan, UltraTech Cement, Grasim and India Cement, while shorts were seen in Eicher Motors, Hero MotoCorp, IndusInd Bank, Bajaj Finance, GAIL, IDFC, OIL, Petronet LNG, Tata Motors DVR and Bharti Infratel.
(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)
