F&O: Nifty crosses consolidation band at 11,550-11,700; VIX moves up 5.39%
On the monthly options front, maximum Put open interest was at 11,700 followed by 11,600 levels.
Nifty50 opened flattish on Tuesday but witnessed strong buying momentum throughout the session to extend its gains towards the 11,810 mark. It formed a bullish candle on the daily scale, as followup buying emerged at higher levels. The index managed to surpass its consolidation band between 11,550 and 11,700 levels after six sessions even as supports shifted higher gradually.
Now, it needs to hold above 11,700 to witness an up-move towards 11,850 and then 12,000 levels, while on the downside, supports are seen at 11,700 and then 11,650 levels.
On the monthly options front, maximum Put open interest was at 11,700 followed by 11,600 levels, while maximum Call OI was at 12,000 followed by 11,800 levels. There was Call writing at 11,900 and 11,800 levels, while meaningful Put writing was seen at 11,700 and then 11,750 levels. Options data suggested a shift in trading range to 11,600-12,000 zone.
India VIX moved up 5.39% to 16.42 level.
Bank Nifty continued its positive momentum and gradually extended its gains towards 30,000 level. It formed a bullish candle on the daily scale, as the bulls held a tight grip and managed to surpass its crucial hurdle at 29,750 level. Supports shifted higher gradually. Nifty now needs to hold above 29,700 to witness an up-move towards 30,000 and then 30,250 levels, while on the downside supports are seen at 29,500 and then 29,250 levels.
Nifty futures closed positive at 11,797 with a gain of 1.48%. Long buildup was seen in Tata Motors, YES Bank, Tata Steel and JSW Steel while shorts were seen in Bharti Infratel and Ultratech Cement.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)