By Chandan Taparia
In the process, it formed a positive candle on the daily chart. The benchmark index snapped its losing streak of last three sessions and took support at the 50 EMA on the daily chart.
It moved within the trading range of the penultimate session and formed an Inside Bar on the daily scale. Momentum oscillator RSI also took support around its recent swing low in the 44 – 46 zone and turned northward. Going forward, if Nifty holds above 12,100 level, then an up-move towards 12,250 and 12,300 levels cannot be ruled out. However, major support for the index remains intact at 12,100 and 12,050 levels.
On the options front, maximum Put open interest stood at 12,000 followed by 11,500 levels, while maximum Call OI was at 12,500 followed by 12,300 levels. We have seen a good amount of writing in Put options 12,100 and 12,000, while marginal Call writing was seen at 12,200 followed by 12,450 levels. Options data indicated a trading range between 12,000 and 12,500 levels.
India VIX fell 3.09 per cent to 15.85 level. Market volatility has been high over the past few days due to ongoing earnings season and the forthcoming Union Budget, 2020.
Bank Nifty formed an Inside Bar on the daily scale, as it traded in the range of the previous session. It managed to hold its crucial support at 30,800 level and bounced towards the 31,000 mark. The index finally took a pause after eight sessions and showed an outperformance against the benchmark indices. Now, major support for the banking index is placed in the 30,600 – 30,800 zone. As long as it sustains above the same level, Bank Nifty may see a pullback towards the 31,400 – 31,500 zone.
Nifty futures closed positive at 12,199 with a gain of 0.45 per cent. There was long buildup in IOC, PFC, IGL, Apollo Hospitals and Ramco Cements, while shorts were seen in ZEEL, NMDC, UPL, PowerGrid and Cummins India.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
Source: Economic Times
