F&O: Nifty supports shifting higher indicates bulls gaining the upper hand
Nifty has to continue to hold above 11,820 to witness an upmove towards 11,929.
NSE Nifty opened positive and extended gains towards the 11,884 mark as it managed to hold above 11,800. The index formed a bullish candle on the daily scale as buying interest was seen for most part of the session.
The 50-stock pack has managed to hold its gains after consolidation of the last two trading sessions and supports are slightly shifting higher, which indicates bulls are again back on track to ride the next move.
Now the index has to continue to hold above 11,820 to witness an upmove towards 11,929 and then 12,000, while supports are seen at 11,800 and then 11,777.
On the options front, maximum Put open interest was at 11,500 followed by 11,000 strike while maximum Call open interest was at 12,000 followed by 12,500 strike. We have seen fresh Put writing at 11,850 and then 11,900, which indicates supports are visible at the current levels. Options data suggest a wider trading range at 11,650 to 12,250 levels.
India VIX fell by 2.59 per cent to the 14.56 level.
Bank Nifty managed to hold its gains and closed above 31,313 as dips were being bought into for most part of the session. The index formed a bullish candle on the daily scale and now needs to hold above 31,313 to extend gains towards 31,500 and then 31,780 while on the downside, supports are seen at 31,150 and then 31,000.
Nifty futures closed positive with a gain of 0.56 per cent at 11,907. Builtup of long position were seen in Bharat Financial Inclusion, Torrent Power, NIIT Technologies and Voltas, while shorts were seen in IGL, NCC, Jindal Steel and PFC.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)