F&O: Nifty forming higher highs & lows; supports shifting higher
Nifty futures closed positive at 11,580 with a gain of 0.76% and VIX fell sharply by 8.32%.
Nifty50 on Thursday managed to hold above 11,500 level and witnessed a bounceback after seeing weakness in last four sessions. It formed a Hammer kind of candle on the daily scale as dips got bought into and managed to test the 11,600 level.
The index has respected its long-term trend line by connecting the major swing lows of 10,004, 10,585 and 11,108.
It has been forming higher highs and lows since last two sessions while supports are slightly shifting higher. Now it needs to hold above 11,550 to extend its bounce towards the next hurdle at 11,650 level, while on the downside, supports are seen at 11,500 and then 11,420 levels.
On the options front, maximum Put open interest was at 11,300 followed by 11,500 while maximum Call OI was at 12,000 followed by 11,900 levels. There was Put writing at 11,200 and then 11,300 levels, while Call writing was seen at 11,650 followed by 11,900 levels. The options data suggested a trading range between 11,400 and 11,800 levels.
India VIX fell sharply by 8.32 per cent to 12.50 level.
Bank Nifty managed to hold above 30,500 and finally ended in the positive territory after a decline of last four sessions. It has been forming higher highs and lows for last two sessions and now need to hold above 30,600 to witness a bounce towards 31,000 level, while on the downside, major support is seen at 30,500 and then 30,250 levels.
Nifty futures closed positive at 11,580 with a gain of 0.76 per cent. There was long buildup in REC, PVR, Petronet LNG and ICICI Prudential while shorts were seen in Bata India, IndiGo, BHEL and Just Dial.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)