By Chandan Taparia
NSE Nifty continued with its winning streak for a fourth consecutive session on Friday and registered a fresh all-time high of 12,293. The index continued to make higher highs and higher lows for seventh consecutive session and rallied by 1.53 per cent for the week. It formed a positive candle on the weekly chart.
The momentum oscillator RSI is sustaining above the trend line breakout on the daily scale, indicating continuation in the ongoing optimism. Till Nifty sustains above its support zone of 12,150–12,200, we may see an upmove towards 12,400.
On the monthly options front, maximum Put open interest was at 12,200 followed by 12,000 strike, while maximum Call OI was at 12,300 followed by 12,400 strike. We witnessed meaningful Put writing at 12,250 and 12,200 strikes, while Call writing was seen at 12,350 followed by 12,400 strike. Options data suggests a shift in higher trading between 12,100 and 12,350 levels.
India VIX moved up by 1.69 pe cent to 12.32. Lower volatility could continue and provide support to the index to attract fresh buying interest.
Bank Nifty ended the session on a positive note and formed a small green body candle on the daily chart. The banking index continued to make higher highs and higher lows for the seventh consecutive session and concluded the week with a gain 1.16 per cent over its previous week’s close. It also sustained well above its consolidation breakout level on the weekly chart, which is a positive sign for the index. Considering overall chart structure, we maintain our positive stance on Bank Nifty for an up move towards 32,750 and higher levels. While support is inching higher towards 32,000.
Nifty futures rose 0.16 per cent to the 12,288 level. Builtup of long positions were seen in Dish TV, Shriram Transfin, Torrent Power, Mindtree, Jindal Steel, while shorts were seen in Tata Motor DVR, Vedanta, Exide Industries, Kotak Bank, Jubilant Foods.
(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