F&O: Bulls holding a tight grip; Nifty forms higher highs & lows
Nifty futures closed positive at 11,672 level, with a gains of 0.62 per cent.
Nifty50 index continued its positive momentum for the fifth consecutive session and extended the gains towards 11,680 level on Friday. It formed a bullish candle on the daily and weekly charts as the bulls held a tight grip on the market. It has been forming higher highs and lows from past five sessions and supports are shifting higher gradually.
Now it has to hold above 11,550 to see fresh momentum towards 11,700 and then 11,800 levels, while on the downside support is seen at 11,550 and then 11,500 levels.
In monthly options, maximum Put open interest was at 11,000 followed by 11,400 levels while maximum Call OI was at 12,000 followed by 11,700 level. There was Put writing at 11,500 and 11,600 levels and Call Unwinding at all the immediate strike prices. Marginal Call writing was seen at strike price 11,900. Options data suggested a shift in higher trading range between 11,500 and 11,800 levels.
India VIX moved up marginally by 0.30% to 15.92 level.
Bank Nifty opened flat but witnessed buying interest towards 29,250 level in the latter part of the session. It formed a Bullish Candle on the daily and weekly charts, as strong buying interest emerged at lower levels. It is forming higher highs and lows from past four sessions, which indicated overall strength. Now, it has to hold above 28,750 level to witness momentum towards 29,500 and then 30,000 levels, while on the downside supports are seen at 28,500 and then 28,250 levels.
Nifty futures closed positive at 11,672 level, with a gains of 0.62 per cent. Long buildup was seen in Manappuram Finance, BHEL, Voltas, Balkrishna Industries and BEL while shorts were seen in Indigo and ZEEL.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)