By Chandan TapariaThe Nifty50 index opened flattish on Wednesday but managed to hold its immediate support in the 10,680-10,690 zone and headed towards the 10,766 level.
It formed a bullish candle and almost engulfed the bearish candle seen on the scale, which suggests support remained intact at lower levels.As long as it holds above 10,680, Nifty can extend its upward move towards 10,800 and then 10,830 levels, while a hold below 10,680 could drag it towards its major support in the 10,638-10,600 zone.On the options front, maximum Put open interest was at 10,500 followed by 10,600 while maximum Call OI was at 11,000 followed by 10,800.
There was Put writing at 10,700 and 10,600 while marginal Call writing was seen at strike price 10,850.
Options data suggested an immediate trading range between 10,650 and 10,850 levels.India VIX moved up 1.51 per cent to 14.27.Bank Nifty opened negative but managed to hold above 25,950 and headed towards 26,200 level.
It formed a bullish candle on daily scale as the bulls maintained a tight grip.
It has been forming higher highs for last five sessions and closed in the positive for the ninth consecutive session.As long as Nifty holds above 25,950, it can extend its move towards 26,250 and then 26,500 levels, while on the downside, supports are seen in the 26,000-25,950 zone.Nifty futures closed positive with a gain of 0.36 per cent at 10,774.
Long buildup was seen in Arvind, Asian Paint, Axis Bank, Bata India, BEL and BHEL while shorts were seen in Ambuja Cement, Apollo Hospital, Apollo Tyre, Ashok Leyland, Bajaj Finance and Federal Bank.(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)