By Chandan Taparia
The Nifty50 index continued its upward move and made a new lifetime high of 10,545. It formed a bullish candle on the daily chart and saw the highest daily close with intraday gains of around 40 points.
Now, the index has to continue to hold above 10,500 to extend its move towards 10,600 and 10,650 levels, while on the downside, supports are seen at 10,450 and 10,400 levels.
On the options front, maximum Put open interest stood at 10,000 followed by 10,400, while maximum Call OI was at 10,500 followed by 10,600. Significant Put writing was seen at 10,500 while fresh Call writing was seen from strike price 10,550 to 10,700.
A shift in Put writing as well as Call writing to higher strike prices suggests a shift in support levels. The option band signifies a broader trading band between 10,400 and 10,600 level for the coming sessions.
India VIX moved up 3.99 per cent at 12.05. Volatility rose after a decline in last six sessions. Overall lower volatility is supporting the bullish bias of the market.
Bank Nifty closed with a marginal gain of 0.10 per cent and has been hovering near the 25,600-25,650 zone for last three sessions. Now, it has to surpass the immediate hurdle in the 25,750-25,800 zone to head towards 25,950-26,000 zone.
On the downside, supports are seen at 25,500 and 25,400 levels.
Nifty futures closed with a gain of 0.24 per cent at 10,530. Long buildup was seen at Concor, Cummins India, MRF, GAIL, Reliance Capital, SAIL, Ambuja Cement, Bharti Infratel, Yes Bank, CEAT, Just Dial, Bajaj Auto and Vedanta, while shorts were seen in Pidilite Industries, IOC, Castrol India, SBI, M&M and Ajanta Pharma.
(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)
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