F&O: Drop in VIX suggests short-term stability & formation of a higher base
Nifty has to sustain above 12,000 to extend its gains towards a new lifetime high of 12,250.
By Chandan Taparia
Nifty remained volatile and traded in a range of 100 points between 12,000 to 12,100 level for most part of Tuesday’s session. The index formed a Bearish Harami candle, as it traded inside the trading range of last session on the daily scale, but managed to hold above the psychologically important 12,000 mark.
Now, it has to hold and sustain above the 12,000 mark to extend its gains towards a new lifetime high of 12,250 while on the downside support exists at 12,000 and then 11,880 levels.
On the options front, Maximum Put open interest was at 11,500 followed by 11,000 levels, while maximum Call OI was at 12,500 followed by 12,000 levels. There was Put writing at strike price 11,800 while minor Call writing was seen at strike prices 12,100 followed by 12,500. Option data suggested a shift in trading range from 11,750-12,250 zone.
India VIX fell 2.14 per cent to 15.62 level. An overall decline in VIX suggests likelihood of short-term stability and formation of a higher base in the market.
Bank Nifty remained consolidative for most part of the day and formed a small bearish candle on the daily scale. However, the overall trend remains positive and some follow-up buying could take the index towards a new lifetime high. Now it has to hold above 31,313 to witness an upward move towards 31,783 and then 32,000 levels, while on the downside, major support exists at 31,150 followed by 31,000 levels.
Nifty futures closed negative at 12,072 level with a loss of 0.26 per cent. Long buildup was seen in Manappuram Finance, Oriental Bank, V-Guard, Tata Global and IDBI Bank while shorts were seen in Mindtree, India Cements, Indian Bank and KSCL.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
Nifty remained volatile and traded in a range of 100 points between 12,000 to 12,100 level for most part of Tuesday’s session. The index formed a Bearish Harami candle, as it traded inside the trading range of last session on the daily scale, but managed to hold above the psychologically important 12,000 mark.
Now, it has to hold and sustain above the 12,000 mark to extend its gains towards a new lifetime high of 12,250 while on the downside support exists at 12,000 and then 11,880 levels.
On the options front, Maximum Put open interest was at 11,500 followed by 11,000 levels, while maximum Call OI was at 12,500 followed by 12,000 levels. There was Put writing at strike price 11,800 while minor Call writing was seen at strike prices 12,100 followed by 12,500. Option data suggested a shift in trading range from 11,750-12,250 zone.
India VIX fell 2.14 per cent to 15.62 level. An overall decline in VIX suggests likelihood of short-term stability and formation of a higher base in the market.
Bank Nifty remained consolidative for most part of the day and formed a small bearish candle on the daily scale. However, the overall trend remains positive and some follow-up buying could take the index towards a new lifetime high. Now it has to hold above 31,313 to witness an upward move towards 31,783 and then 32,000 levels, while on the downside, major support exists at 31,150 followed by 31,000 levels.
Nifty futures closed negative at 12,072 level with a loss of 0.26 per cent. Long buildup was seen in Manappuram Finance, Oriental Bank, V-Guard, Tata Global and IDBI Bank while shorts were seen in Mindtree, India Cements, Indian Bank and KSCL.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)