Bank Nifty has to continue to hold above 28,888-29,000 zones to extend its momentum towards new life time high of 29,700 then 30,000 zones.
Chandan Taparia
Nifty index continued its positive momentum and has been making higher highs-higher lows from last five trading sessions. It witnessed a major consolidation breakout above 11,000 zones at the beginning of the week and rallied by around 450 points towards 11,500 zones.
It formed a Bullish candle on weekly scale while an inverted Hammer on daily scale which suggests that overall bulls are holding the tight grip and follow up buying could extend its momentum towards new fresh six months high levels.
Now it has to continue to hold above 11,333 zones to extend its up move towards 11,550-11,600 zones while major support exists at 11,280 then 11,180 zones.
Nifty has seen major consolidation breakout and remained positive for all the five trading sessions of the weak. India VIX moved up by 6.16 percent at 15.86 levels in the last week as Call IV has spiked higher than Put IV. VIX has to cool down below 15 zones to make a step towards new higher territory.
On Option front, maximum Put Open Interest (OI) is at 11,000 followed by 11,200 strike while maximum Call OI is at 11,500 followed by 11,400 strike. Meaningful Put writing is seen at 11,400 followed by 11,500 strike while Call writing is seen at 11,700 strike. Option band signifies a shift in higher trading range in between 11,300 to 11,600 zones.
Bank Nifty has been outperforming the Nifty index and trading at new high territory. During the last week, it surpassed its previous life time high of 28,388 and headed towards 29,520 levels. It has been making higher lows from last eleven levels trading sessions and bullish momentum is intact with the buying in many heavyweights stocks.
It formed a Bullish Candle on daily as well as weekly scale which suggests overall bullish command. Now it has to continue to hold above 28,888-29,000 zones to extend its momentum towards new life time high of 29,700 then 30,000 zones.
Stock wise positive setup in Titan, ICICI Bank, TCS, Infosys while weakness in HUL, Dabur etc.
(The author is Derivatives & Technical Analyst at Motilal Oswal)
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