INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index is stuck in a broader trading range between 10,700 and 10,835 levels since last eight sessions
by a bullish Harami pattern, which indicates that the bulls and the bears are not ready to loosen their grip and follow-up buying is missing
on both sides.
The index formed a Doji candle or a pin bar last week, but failed to hold above the same and again got stuck in a range
Now it requires a decisive range breakout above 10,835 or below 10,700 to commence the next leg of rally.
If it manages to hold above
10,835, only then an upward move could be seen towards 10,888 and then 10,929 levels, while a drift below 10,700 level could take it towards
10,660 and then 10,620 levels.
On the options front, maximum Put open interest was at 10,700 followed by 10,600 while maximum Call OI was at
11,000 followed by 10,800 and 10,900
There was Put unwinding at all immediate strike prices while significant Call writing was seen at 10,800 and 10,900 levels
Options data suggested an immediate trading range between 10,700 and 10,880 levels.
India VIX moved up 4.68 per cent to 12.58 level.
Bank
It has to hold above 26,500 to witness an upward move towards 26,750 and then 27,000 levels, while a hold below 26,450 could make it dip
towards 26,250 level.
Nifty futures closed in the negative with a loss of 0.69 per cent at 10,759
Long buildup was seen in Bharat Financials, Ultratech Cement, Infosys, Tata Elxsi, HUL and Bharti Infratel, while shorts were seen in ZEEL,
Hindalco, Hero MotoCorp, Hindalco, SRF, Idea, Tata Motors, Motherson Sumi, BPCL and LT.
(Chandan Taparia is Technical Derivative Analyst at
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
