By Chandan Taparia
Nifty opened unfavorable on Monday in line with weak world-wide cues and drifted towards the 10,220 mark in the initial hour of the session. It consolidated in a range of 100 details for most aspect of the session, but witnessed buying interest at decreased stages and managed to close earlier mentioned 10,300 stage.
The index fashioned a small body candle on the every day scale, as dips got acquired into though the hurdles remained intact at greater stages. Now, the index has to hold above 10,333 amount to witness an up-transfer towards the 10,500-10,555 zone, even though draw back support is noticed in the 10,180-10,150 zone.
India VIX moved up marginally by .59 for every cent to 28.91 degree. On the other hand, lessen volatility suggests an all round bullish stance and emergence of a number of supports on modest declines.
On the options front, optimum Put open interest stood at 9,000 adopted by 10,000 levels, even though greatest Call OI was at 11,500 followed by 11,000 concentrations. Call creating was witnessed at 11,000 and 10,400 levels, although there was Put writing at 9,500 and then 10,000 amounts. Options data instructed a wider trading range concerning 9,800 and 10,800 stages.
Bank Nifty opened on a unfavorable note and drifted in direction of the 21,000 degree in original hour of the session. Even so, it remained consolidative for most aspect of the session and wiped out some of the losses, as buying emerged at lower amounts. It ultimately closed close to the 21,350 degree. The index fashioned a Hammer candle on the everyday scale, as dips were being acquired into at decreased degrees. Now, the immediate support for the index exists at 21,000 and then 20,800 levels, even though on the upside, hurdles are viewed at 22,000 then 22,500 ranges.
Nifty futures shut damaging at 10,261 with a .54 for each cent loss. Beneficial setups have been noticed in stocks like HDFC Bank, HUL, Kotak Bank, Bharti Airtel and Britannia even though the structures were weak in Bharat Forge, IndusInd Bank, Tata Steel, TechM and Ashok Leyland.
(Chandan Taparia is Technological & Derivative Analyst at MOFSL. Traders are advised to talk to financial advisers just before having an investment calls dependent on these observations)
F&O: Hurdles intact for Nifty, but decrease volatility backs bullish stance
By Chandan Taparia