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F&O: Nifty forms higher high again, bulls still in command


By Chandan Taparia

The Nifty50 index opened on a positive note on Tuesday and managed to hold above the 10,480 level. The index formed a Hanging Man candle on the daily charts, which signalled that followup buying was missing at higher levels.

However, Nifty50 continued to form higher highs for last 12 consecutive sessions, which indicated that the bulls were still holding the momentum in the market.

As long as the index holds above 10,480, it can extend gains towards 10,580 and then 10,630 levels, while on the downside, supports are seen at 10,480 and then 10,440 levels.

On the options front, maximum Put open interest stood at 10,400, followed by 10,300, while maximum Call OI was at 10,700, followed by 10,500. Significant Put writing was seen at strike prices 10,500 and 10,550, which shifted its support higher, while minor Call writing was seen at strike price 10,600 followed by 10,700. The option band suggested an immediate trading range between 10,480 and 10,650 levels.

India VIX moved down 1.52 per cent to 14.04.

Bank Nifty opened on a flat note and took support at its previous hurdle at 25,250. It formed a Hammer candle on the daily chart, which meant every decline is being bought into. As long as the Bank Nifty holds and sustains above 25,250, it can start the next leg of upward move towards 25,500 and then 25,750 levels, while on the downside, major supports are seen at 25,000 and then 24,750 levels.

Nifty futures closed in the positive with a gain of 0.06 per cent at 10,548. Long buildup was seen in DCB Bank, PowerGrid, Jet Airways, Concor, Titan, UBL, NTPC, NIIT Tech, ICICI Bank and L&T Finance while shorts were seen in IGL, Yes Bank, Infosys and Canara Bank.

(Chandan Taparia is Technical & Derivative Analyst at Motilal Oswal Securities. Investors are advised to consult financial advisers before taking an investment calls based on these observations)

Source: Economic Times