F&O: Nifty bounces, but options data signals lower trading range
Nifty needs to hold above 10,800 to witness a bounce towards 10,950 and then 11,000 levels.
Nifty remained volatile throughout Wednesday and traded in a 100-point range between 10,750 and 10,850 levels. It formed a bullish candle on the daily scale as buying interest emerged at lower levels while the indices faced hurdles at higher zones.
Now, Nifty needs to hold above 10,800 to witness a bounce towards 10,950 and then 11,000 levels, while on the downside, supports are seen at 10,750 and then 10,700 levels.
On the options front, maximum Put open interest was at 10,800 followed by 10,600 levels while maximum Call OI was at 11,200 followed by 11,700 levels. There was Call writing at 11,000 followed by 10,900 levels while minor Put writing was seen at 10,800 and 10,600 levels. Options data suggested a lower trading range between 10,600 and 11,200 levels.
India VIX fell 4.54 per cent to 17.23 level.
Bank Nifty managed to hold above 26,600 and gradually extended its gains toward 27,300 level. It formed a bullish candle on the daily scale, as buying emerged at lower levels. It relatively outperformed the benchmark Nifty. Now, Bank Nifty needs to hold above 27,250 to witness a bounce towards 27,500 and then 27,750 levels while on the downside supports are seen at 26,850 and then 26,600 levels.
Nifty futures closed positive at 10,880 level with a gain of 0.40 per cent. Long buildup was seen in BEL, RBL Bank, Just Dial and REC while shorts were seen in Escorts, Balkrishna Industries, Muthoot Finance and Maruti.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)