F&O: Nifty trading band shifts to 10,700-10,900
ET CONTRIBUTORS|
Jan 17, 2018, 05.38 PM IST
By Chandan Taparia
The Nifty50 index managed to hold above 10,659 and made a new lifetime high of 10,803 in Wednesday's trade. The index formed a Bullish Engulfing pattern and nullified the consolidation of last two sessions. It has managed to cross and close above the immediate supply trend line by connecting all the swing highs of 10,137, 10,490 and 10,760.
Now, it has to continue to hold above 10,700 to extend its move towards 10,850 and then 11,000, while on the downside support exists at 10,650 level.
On the options front, maximum Put open interest stood at 10,500 followed by 10,700 and 10,600, while maximum Call OI was at 11,000 followed by 10,800. Significant Put writing was seen at 10,700 and 10,890 while Call unwinding was seen at 10,650, 10,700, 10,750, 10,800 and 10,900. The option band signified a trading band between 10,700 and 10,900 levels.
India VIX fell 1.56 per cent to 13.86. VIX has to hold below 13 to continue with its positive and smooth ride in the market.
Bank Nifty made a new lifetime high of 26,335 and closed with decent gains of more than 1 per cent. It formed a bullish candle and needs to hold above 26,000 to extend its move towards 26,500 level. On the weekly chart, fresh Put writing was seen at 26,000 to 26,300 while Call writing was seen at 26,400 and 26600 levels with highest Call OI at strike prices 26,500 and 26,400.
Nifty futures closed in the positive with a gain of 0.83% at 10,788. Long buildup was seen on the counters of ICICI Bank, GMR Infra, Axis Bank, Adanient, Jublfood, INFY, Voltas, KTK Bank, TCS, Grasim, Allahabad Bank, L&T, PC Jewellers and Reliance Communications, while shorts were seen in ZEEL, Reliance Capital, Adani Power, Apollo Hospital and Petronet.
(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 managed to hold above 10,659 and made a new lifetime high of 10,803 in Wednesday's trade. The index formed a Bullish Engulfing pattern and nullified the consolidation of last two sessions. It has managed to cross and close above the immediate supply trend line by connecting all the swing highs of 10,137, 10,490 and 10,760.
Now, it has to continue to hold above 10,700 to extend its move towards 10,850 and then 11,000, while on the downside support exists at 10,650 level.
On the options front, maximum Put open interest stood at 10,500 followed by 10,700 and 10,600, while maximum Call OI was at 11,000 followed by 10,800. Significant Put writing was seen at 10,700 and 10,890 while Call unwinding was seen at 10,650, 10,700, 10,750, 10,800 and 10,900. The option band signified a trading band between 10,700 and 10,900 levels.
India VIX fell 1.56 per cent to 13.86. VIX has to hold below 13 to continue with its positive and smooth ride in the market.
Bank Nifty made a new lifetime high of 26,335 and closed with decent gains of more than 1 per cent. It formed a bullish candle and needs to hold above 26,000 to extend its move towards 26,500 level. On the weekly chart, fresh Put writing was seen at 26,000 to 26,300 while Call writing was seen at 26,400 and 26600 levels with highest Call OI at strike prices 26,500 and 26,400.
Nifty futures closed in the positive with a gain of 0.83% at 10,788. Long buildup was seen on the counters of ICICI Bank, GMR Infra, Axis Bank, Adanient, Jublfood, INFY, Voltas, KTK Bank, TCS, Grasim, Allahabad Bank, L&T, PC Jewellers and Reliance Communications, while shorts were seen in ZEEL, Reliance Capital, Adani Power, Apollo Hospital and Petronet.
(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)
