INSUBCONTINENT EXCLUSIVE:
By Chandan Taparia The Nifty50 index swung between negative and rangebound trading and formed a Small Bearish candle on the daily scale on
Friday.
It formed a Spinning Candle with long shadows followed by a Dragon Fly Doji on the weekly chart, which indicated a tough fight
between the bulls and the bears.
However, the immediate trend is positive though followup buying was missing at higher levels
Nifty has to continue to hold above 10,650 to extend its gains towards 10,780 and then 10,888 levels, while on the downside, support is seen
at the 10,620 level.
On the options front, maximum Put open interest stood at strike price 10,600 followed by 10,200, while maximum Call OI
was at 11,000 followed by 10,700 and 10,800
There was Put writing at 10,700, followed by 10,500, while Call writing was seen at 10,700 and then 11,000 level.
Options data suggested a
broader trading range between 10,600 and 10,900 levels for the next few sessions.
India VIX moved up 2.65 per cent to 13.57 level
Now, it has to hold above 26,500 to witness an upward move towards 27,000 and then 27,200 levels, while on declines, major support is seen
near the 26,250 mark.
Nifty futures closed with a loss of 0.29 per cent at 10,671
Long buildup was seen in Torrent Pharma, TVS Motor, Bajaj Auto, KPIT, Torrent Power and Hero MotoCorp while shorts were seen in Just Dial,
Cummins India, SRF, PC Jeweller, Eicher Motor, Apollo Hospital, SAIL, Ajanta Pharma and LT Finance.
(Chandan Taparia is Technical
Derivative Analyst at Motilal Oswal Securities
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
