India VIX fell down by 1.04 percent at 15.19. On the options front, maximum Put OI is placed at 10000 followed by 9800 strikes while maximum Call OI is placed at 11,000 followed by 10,500 strikes.
The Nifty50 which started on a muted note weighed down by weak global cues managed to reclaim 10,200 in the last one hour of the trading session on Tuesday. The index made a bullish candle for the second consecutive day in a row.
The Nifty50 index is trading well above its crucial short-term moving averages which suggest that the momentum is likely to continue. For investors who went long on the index should keep a stop below 10,117 on a closing basis.
The next crucial resistance level for the index is placed near 10,300 levels but as long as Nifty trades above 10,200, bulls are likely to have an upper hand, suggest experts.
The Nifty50 which opened at 10,186 slipped to an intraday low of 10171. Bulls charged on D-Street in the second half of trading session to push the index to its intraday high of 10,255. The Nifty closed 33 points higher at 10,245.
“Defying negative rumblings from the overnight global cues bulls have chosen to march ahead on Indian bourses after a brief intraday consolidation before signing off the day with a decent bullish candle formation,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“In this process, they approached the supply line of a 22-day old down sloping channel whose value is placed around 10240 levels for next session. If they manage to successfully negotiate this resistance point then on a sustainable breakout a new target towards 10600 will be thrown out from the breakout point of this downsloping channel,” he said.
However, in between, a major hurdle is placed around 10,360 levels in the form of 50 days EMA which bulls need to conquer on closing basis. Mohammad further added that traders are advised to remain on the long side of the trade and look for initial target placed around 10,350 with a stop below 10117 on a closing basis.
India VIX fell down by 1.04 percent at 15.19. On the options front, maximum Put OI is placed at 10000 followed by 9800 strikes while maximum Call OI is placed at 11,000 followed by 10,500 strikes.
Fresh Put writing at 10,000 and 10,100 strikes while Call writing is seen at 10,300 and 10,400 strikes. “Option data suggests immediate trading range in between 10,100 to 10,400 zones. Technically, Nifty index closes near its falling supply trend line by connecting swing highs of 10,631, 10,478 and 10,250,” Chandan Taparia, Derivatives, and Technical Analyst at Motilal Oswal Securities told Moneycontrol.
“It formed a Bullish candle on a daily chart and holding well above previous weeks high levels. Now it has to continue to hold above 10,222 to extend its move towards 10,276 then 10,333 levels while supports are seen at 10,180 then 10,141 zones,” he said.