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F&O: Nifty must hold 12,000 to extend gains towards 12,250

On the options front, maximum Put open interest was at 11,500 followed by 11,000.

Updated: Jun 03, 2019, 07.08 PM IST
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India VIX fell down 0.64 per cent to 15.96 levels.
By Chandan Taparia

NSE Nifty opened positive and surged nearly 175 points to make a fresh lifetime high of 12,103. The index formed a bullish candle on the daily scale and managed to give a breakout from its consolidating band of 11,800-12,041 zone after five trading sessions.

The 50-stock pack closed above the psychological 12,000 level for the first time.

Now the index has to hold above 12,000 to extend gains towards new lifetime high of 12,250, while on the downside, support is seen at 12,000 and then 11,880.

On the options front, maximum Put open interest was at 11,500 followed by 11,000 strike while maximum Call open interest stood at 12,500 followed by 12,000 strike.

We have seen Put writing at 11,800 and 12,000 strikes while Call writing was seen at 12,400 and 12,300 strikes. Options data suggests a shift in higher trading range at 11,750-12250 zone.

India VIX fell down 0.64 per cent to 15.96 levels. Overall decline in VIX suggests that now short term stability and formation of higher base could be seen in the market.

Bank Nifty managed to recover from lower levels of 31,300 and gradually extended gains towards 31,650. It formed an Inside Bar Candle on the daily scale, but traded in a broader range of 400 points for most part of the session. Now Bank Nifty has to hold above 31,313 to witness an upmove towards 31,783 and then 32,000, while major support exists at 31,150 and then 31,000.

Nifty futures closed with a gain of 1.65 per cent at 12,113. Built-up of long position were seen in Apollo Hospital, Just Dial, Hero MotoCorp and Bajaj Auto while shorts were seen in KSCL, Torrent Pharma and Bank of Baroda.

(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of
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