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By Chandan Taparia
Nifty opened positive on Tuesday and after an early consolidation witnessed a gradual recovery towards 11,900 level. It managed to hold Monday’s low and nullified the weak structure of that session. The index formed a bullish candle, but an Inside Bar, as it traded inside the trading range of last session. It has again got stuck in a range and every declines got bought into even as multiple hurdles remained intact at 12,020 level.
Now, Nifty has to hold above 11,777 mark to witness a bounce towards 12,020 and then see a fresh move towards the 12,100-12,200 zone, while on the downside, major support exists at 11,666 level.
India VIX fell 2.78 per cent from 22.83 to 22.19 level. Volatility needs to cool down below 20 mark for the market to stabilise and keep in account any spike ahead of the US election.
On the options front, maximum Put open interest was seen at 11,000 level followed by 11,500, while maximum Call OI was at 12,000 followed by 12,500 level. Call unwinding was seen at most of the immediate strike prices, while there was Put writing at 11,800 and then 11,700 levels. Options data suggested an immediate trading range between 11,700 and 12,000 levels.
Bank Nifty managed to hold Monday’s low of 23,900 and witnessed a strong comeback towards 24,800 level. It managed to reverse the losing streak of last three sessions and saw the highest daily close of last 155 sessions since March 13, 2020. It formed a bullish candle on the daily scale and made higher lows in five weeks. Now, it has to hold above 24,500 level to witness a fresh move towards 25,200 mark, while major supports are seen at 24,250 and 24,000 levels.
(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 opened positive on Tuesday and after an early consolidation witnessed a gradual recovery towards 11,900 level. It managed to hold Monday’s low and nullified the weak structure of that session. The index formed a bullish candle, but an Inside Bar, as it traded inside the trading range of last session. It has again got stuck in a range and every declines got bought into even as multiple hurdles remained intact at 12,020 level.
Now, Nifty has to hold above 11,777 mark to witness a bounce towards 12,020 and then see a fresh move towards the 12,100-12,200 zone, while on the downside, major support exists at 11,666 level.
India VIX fell 2.78 per cent from 22.83 to 22.19 level. Volatility needs to cool down below 20 mark for the market to stabilise and keep in account any spike ahead of the US election.
On the options front, maximum Put open interest was seen at 11,000 level followed by 11,500, while maximum Call OI was at 12,000 followed by 12,500 level. Call unwinding was seen at most of the immediate strike prices, while there was Put writing at 11,800 and then 11,700 levels. Options data suggested an immediate trading range between 11,700 and 12,000 levels.
Bank Nifty managed to hold Monday’s low of 23,900 and witnessed a strong comeback towards 24,800 level. It managed to reverse the losing streak of last three sessions and saw the highest daily close of last 155 sessions since March 13, 2020. It formed a bullish candle on the daily scale and made higher lows in five weeks. Now, it has to hold above 24,500 level to witness a fresh move towards 25,200 mark, while major supports are seen at 24,250 and 24,000 levels.
Nifty futures closed positive at 11,874 level with a 0.82 per cent gain. The trade setup looked positive in Kotak Bank, ACC, Nestle, Colgate Palmolive, Asian Paint, Tata Consumer, Bajaj Finance, IGL, Concor and HDFC Bank but weak in M&M Financial, PVR, IndiGo, ONGC, PNB and TCS.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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