INSUBCONTINENT EXCLUSIVE:
any winner with a simple majority.
The index continued to hit higher lows for the seventh consecutive session, but formed a Shooting Star
candle on the daily chart, which indicated that the bears are quite active at higher levels.
Now, Nifty has to hold above 10,785 to extend
its move towards 10,888 and then 10,950 levels, while on the downside, supports are seen at 10,725 and then 10,680 levels.
On the options
front, maximum Put open interest stood at strike price 10,500 followed by 10,700 while maximum Call OI was at 11,000 followed by 10,800
Meaningful Put writing was seen at strike price 10,800 followed by 10,900, which shifted its support to higher level
Minor Call writing was seen at 11,200 and 11,000 levels
Options data suggested an immediate trading range between 10,700 and 10,900 levels.
India VIX fell 7.55 per cent to 13.16 level, as the
market got stuck in a range after Karnataka election results.
Bank Nifty remained highly volatile throughout the session
It rallied more than 500 points, but later witnessed sustained selling and formed a pattern similar to the Long-Legged Doji, which implied
that preceding trend was losing momentum
As long as it holds above 26,250 level, the immediate trend for Nifty should remain intact and it can move towards the 26,750- 26,850 zone,
while on the downside, supports are seen near the 26,100 mark.
Nifty futures closed flat to positive with a marginal gain of 0.01 per cent
Long buildup was seen in Power Grid, Colgate Palmolive, Bajaj Finance, Lupin, IndusInd Bank and Tata Steel while shorts were seen in
Allahabad Bank, Indiabulls Housing Finance, ACC, Tata Motors DVR, BEL, Tata Global, PC Jeweller, NCC, Tata Motors, Ashok Leyland, OFSS,
Cummins India and SBI.
(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)
