Chandan Taparia said Nifty index continued its formation of higher lows for six consecutive sessions and supports are gradually shifting higher to surpass its life time high of 11,760 zones.
Nifty50 after rangebound trade managed to close above 11,700 levels for the first time since August 2018 and formed 'Doji' kind of pattern on daily charts on April 2 as closing is near opening levels.
The formation of Doji candle with comparative long lower shadow with the inside bar formation indicated that declines are being bought and it is just shy to test life-time high marks.
Nifty50 after opening sharply higher at 11,711.55 remained volatile for major part of the session. The index touched an intraday high of 11,729.35 and low of 11,655.85, before closing 44 points higher at 11,713.20.
"Albeit Nifty50 appears to be attracting some buying interest on intraday dips as pointed out by the longer lower shadow of Tuesday's session by the end of the day it registered a Doji kind of indecisive formation on the back of negative advance decline ratio which is a cause for concern going forward," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
He said as momentum oscillators are in overbought zone they need some breather for bulls so that their readings can reach the normal levels to facilitate further upsides.
Unless Nifty consolidates or corrects for couple of sessions risk reward ratios to ride this rally will not favour bulls, he added.
Mazhar Mohammad said the longer shadows of last three trading sessions are suggesting that bulls are just dragging their feet on the upside as almost in each session they closed where they opened.
Weakness shall get materialised once bears manages to pull down the Nifty below last Monday's gap zone of 11,644–11,630 levels on closing basis, he added. According to him, in case if bulls continues to defy gravity and moves higher then initial target can be a test of life time highs present around 11760 levels.
Bank Nifty has got stuck in a range from last four trading sessions but supports are intact near to 30,150-30,200 zones. The index closed 27.75 points higher at 30,354.25.
"Now it has to hold above 30,150-30,200 zones to extend the rally towards 30,650 and then 31,000 zone while on the downside support is seen at 30,000-29,888 zones," Chandan Taparia, Associate Vice President | Analyst-Derivatives at Motilal Oswal Financial Services told Moneycontrol.
India VIX moved up by 0.44 percent to 18.08 levels.
VIX started to hold at higher levels so it requires a cool off to shifts its base to higher zones, experts said, adding Option band signifies an immediate trading range in between 11,500 to 11,800 zones.
On the Option front, maximum Put open interest (OI) is at 11,000 followed by 11,500 strike while maximum Call OI is at 12,000 followed by 11,800 strike.
Call writing is at 12,000 followed by 11,800 strike while Put writing is at 11,700 followed by 11,500 strike.
Chandan Taparia said Nifty index continued its formation of higher lows for six consecutive sessions and supports are gradually shifting higher to surpass its life time high of 11,760 zones.
Now it has to continue to hold above 11,650 zone to witness an upmove towards 11,760 then 11,800 zones while on the downside major support exists at 11,550 zone, he added.
