F&O: Nifty forming higher highs & lows on daily scale; VIX slips 3%
Nifty futures closed positive at 11,483 with a gain of 0.38 per cent.
Nifty50 opened positive on Wednesday, but consolidated in a 70-point range for most part of the session. It formed a Hammer kind of candle on the daily scale, as buying emerged near the 11,400 level. It surpassed the falling supply trend line on the daily scale, which was formed by connecting the swing highs of 11,694, 11,593 and 11,554 levels, and started forming higher highs and lows on the daily scale. Now, it needs to hold above 11,333 level to witness a bounce towards the 11,550-11,600 zone, while on the downside major support is seen at 11,333 and then 11,250 levels.
On the monthly options front, maximum Put open interest stood at 11,000 followed by 11,400 levels, while maximum Call OI was at 12,000 followed by 11,500 levels. Marginal Put writing was seen at 11,400 and then 11,300 levels, while there was Call unwinding at all immediate strike prices. Options data suggested a wider trading range between 11,200 and 11,600 levels.
India VIX fell 2.91 per cent to 16.36 level.
Bank Nifty opened positive but failed to hold the gains at higher levels and drifted towards 28,300 level. It formed a bearish candle on the daily scale but at the same time dips got bought into.
The index is finding support near the 28,000 mark, while hurdles were seen at higher levels as it got stuck in a broader trading range between 27,500 and 28,800 levels for past nine sessions.
Now the index needs to hold above 28,500 to witness a bounce towards 28,800 and then 29,200 levels, while on the downside support is seen at 28,000 and then 27,750 levels.
Nifty futures closed positive at 11,483 with a gain of 0.38 per cent. Long buildup was seen in Mindtree, ACC, ZEEL, Siemens and MGL while shorts were seen in Federal Bank, Indiabulls Housing Finance, Castrol, Chola Finance.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)