F&O: Nifty builds on its speed, ends November series on a high

By Chandan Taparia

The Nifty opened positive and continued its momentum towards 10,880 zones. It filled a major falling gap made on October 4 and completed its 50 per cent retracement of entire downleg from 11,760 to 10,004 levels.

It has been making higher highs and higher lows from last three trading sessions and supports are shifting higher. Now it has to continue to hold above 10,777-10,800 zones to extend its move towards 10,929 and then psychological 11000 zones while on the downside, major support is seen at 10,650 levels.

Nifty November series closed with handsome gains of 7.25 per cent and registered the biggest expiry to expiry gains since March 2016. It has recovered most of its losses made in October series and placed near crucial zones where a selling momentum started in the beginning of October. Nifty futures have seen rollover of around 64 per cent as per the provisional data while Bank Nifty saw rollover of around 71 per cent on a provisional basis.

For the December series, on the options front, maximum Put OI is at 10,000 followed by 10,500 strikes while maximum Call OI is seen at 11,000 followed by 11,500 strike. OI concentration scattered at different strikes but an early data setup suggests a trading range between 10,700 to 11,000 zones.

India VIX moved up by 4.11 per cent at 18.69 levels. VIX moved up as Call IV spiked up sharply as short covering and Call unwinding happened in most of the strikes. Now, it has to cool down below 17-16 zones to get the smooth ride to surpass psychological 11,000 zones.

Bank Nifty formed a Bullish Belt Hold candle on daily scale as it witnessed sustained buying interest till the end of session and headed towards 27,000 zones. It has been making higher highs, higher lows from last four trading sessions and closed at the highest levels seen last 10 weeks. Now it has to hold above 26666 zones to extend its move towards 27,200 then 27,500 zones.

Nifty futures closed positive with gains of 1.33 per cent at 10,860 levels. Buying interest was seen in private banking, finance, metals, FMCG with a rangebound movement in IT and PSU Banks.

(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment call based on these observations.)

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