F&O: Vix drops, Nifty trading range shifts to 11,600-11,800
Nifty has to hold above 11,666 level to extend gains towards 11,761 and then 11,850 levels.
By Chandan Taparia
Nifty50 managed to hold its multiple support at 11,550 level and witnessed strong buying interest in the last hour of Wednesday’s session by extending it gains towards the 11,740 level.
It formed a bullish candle on the daily scale and negated the formation of lower highs and lows after a decline due to profit booking in last three sessions. Now, Nifty has to hold above 11,666 level to extend its gains towards 11,761 and then 11,850 levels while on downside support is seen at 11,600 and then at 11,550 levels.
On the options front, maximum Put open interest was at 11,500 followed by 11,600 while maximum Call OI was at 11,800 followed by 12,000 levels. Meaningful Put writing was seen at 11,700 followed by 11,650 levels, while there was Call unwinding at 11,700 followed by 11,600 levels. The option band signified a shift in trading range between 11,600 and 11,800 levels.
India VIX fell 3.76 per cent to 23.71. A decline in volatility has offered comfort to the bulls, but a higher VIX signalled volatile swings ahead in the market.
Bank Nifty recovered sharply from a lower band between 29,450 and 29,650 levels and extended the gains towards 29,900 level. It formed a bullish candle on the daily scale and negated the formation of lower highs after two sessions. Now it has to hold above 29,750 level to witness a bounce towards 30,000 and then 30,250 levels, while on the downside support was seen at 29,500 level.
Nifty futures closed positive at 11,732 level with a gain of 1.26 per cent. There was long buildup in ONGC, HCL Tech, Titan and TechM while shorts were seen in Marico, Motherson Sumi, Tata Motor, Apollo Hospital.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
Nifty50 managed to hold its multiple support at 11,550 level and witnessed strong buying interest in the last hour of Wednesday’s session by extending it gains towards the 11,740 level.
It formed a bullish candle on the daily scale and negated the formation of lower highs and lows after a decline due to profit booking in last three sessions. Now, Nifty has to hold above 11,666 level to extend its gains towards 11,761 and then 11,850 levels while on downside support is seen at 11,600 and then at 11,550 levels.
On the options front, maximum Put open interest was at 11,500 followed by 11,600 while maximum Call OI was at 11,800 followed by 12,000 levels. Meaningful Put writing was seen at 11,700 followed by 11,650 levels, while there was Call unwinding at 11,700 followed by 11,600 levels. The option band signified a shift in trading range between 11,600 and 11,800 levels.
India VIX fell 3.76 per cent to 23.71. A decline in volatility has offered comfort to the bulls, but a higher VIX signalled volatile swings ahead in the market.
Bank Nifty recovered sharply from a lower band between 29,450 and 29,650 levels and extended the gains towards 29,900 level. It formed a bullish candle on the daily scale and negated the formation of lower highs after two sessions. Now it has to hold above 29,750 level to witness a bounce towards 30,000 and then 30,250 levels, while on the downside support was seen at 29,500 level.
Nifty futures closed positive at 11,732 level with a gain of 1.26 per cent. There was long buildup in ONGC, HCL Tech, Titan and TechM while shorts were seen in Marico, Motherson Sumi, Tata Motor, Apollo Hospital.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
