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F&O: Nifty50 needs to hold above 12,035 level to hit new lifetime high

On the monthly options front, maximum Put open interest was at 12,000 followed by 11,500.

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Dec 13, 2019, 05.14 PM IST
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Builtup of long positions were seen in Tata Elxsi, Mindtree, Tata global, Hindalco, Motherson Sumi, Union Bank of India and Tata Motors.
By Chandan Taparia

NSE Nifty opened gapup for a second consecutive session on Friday and headed towards the 12,100 level. The index has gained 265 points to 12,098 in three straight sessions of gains. It formed a bullish candle on the daily scale today and formed higher highs and higher lows from the second session.

The index, which formed a strong bullish candle on the weekly scale, is just 72 points away from its lifetime high of 12,158, and a small followup could extend the rally. Now, Nifty has to hold above the 12,035 zone to extend momentum towards 12,250-12,300 zone, while on the downside, support exists at 12,000 and then 11,950.

On the monthly options front, maximum Put open interest was at 12,000 followed by 11,500 strike, while maximum Call OI is at 12,000 followed by 12,200 strike. We witnessed major Put writing at 12,000 and 12,100 strikes, while Call unwinding was at 12,000 and 11,900 strikes. Option data suggests a wider trading range between 11,900 and 12,200 levels for the next coming weeks.

India VIX fell 0.37 per cent to the 13.30 level. Lower volatility could continue to provide support to the index to attract fresh buying interest.

Bank Nifty continued its positive momentum for a third session and headed towards the 32,100 level. The index is near its lifetime high after forming a bullish candle on daily and weekly scales. The banking index has seen strong recovery of 1,100 points in the last three sessions from 31,000 to 32,100, and regained the price consolidation of the last couple of sessions. The index formed a bullish setup and a hold above 31,700 could take it towards 32,157 and then 32,500. On the downside, important support exists at 31,400.

Nifty futures gained 1.02 per cent to the 12,151 level. Builtup of long positions were seen in Tata Elxsi, Mindtree, Tata global, Hindalco, Motherson Sumi, Union Bank of India and Tata Motors while shorts in Apollo Hospital, Jindal Steel, Indigo, Bharti Airtel and Dr Reddy’s.

(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 www.economictimes.com.)

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