By Chandan Taparia
Nifty opened constructive on Tuesday previously mentioned 11,250 amount and continued its beneficial momentum towards the 11,400 mark. It managed to surpass the immediate swing high in the 11,350-11,370 zone after consolidating for past 14 classes, and had the greatest everyday close in very last 104 sessions considering that February 27, 2020. The index shut the session with a first rate acquire of all-around 140 points, and shaped a powerful bullish candle on the each day scale. The significant trend continues to be intact to constructive, and the breakout of the current consolidation can begin a refreshing leg of rally in the market. Now, Nifty has to maintain previously mentioned 11,250 amount to witness a bounce in direction of 11,500 and 11,600 degrees, whilst on the downside support exists in the 11,200-11,150 zone.
India VIX fell 4.13 per cent to 21.30 degree. Volatility is cooling off gradually on week-on-week basis and the in general lessen volatility indicates the bullish stance could carry on with a buy-on-dips tactic in this market.
Most Put open interest stood at 11,000 level followed by 11,200, though optimum Call OI was at 11,500 followed by 12,000 degree. Insignificant Call creating was observed at 11,400 and 11,700 amounts, although there was Put composing at 11,300 and 11,200 concentrations. Options details proposed a higher trading range among 11,200 and 11,600 concentrations for the coming handful of times.
Bank Nifty opened positive and continued its momentum to the 22,222 mark. It managed to hold its 50-day EMA and formed a bullish candle on the daily scale with a bullish crossover on the complex indicator. The index managed to recover most of previous week’s losses and it appears to be like like the bulls are back on track to see a bigger momentum.
Now, the index has to hold earlier mentioned 22,000 level to witness an up-move to 22,500 and then 22,750 degrees, when on the downside, speedy support is noticed at 21,750 and then 21,400 ranges.
Nifty futures closed positive at 11,405 level with 1.22 for every cent gains. The trade set up seemed positive in Grasim, Berger Paint, Ambuja Cement, SRF, ACC, Ultratech Cement, Pidilite Industries, JSW Steel, Voltas, Asian Paints, Titan, TVS Motor, Jubilant Foodworks, Tata Steel and RIL but weak in BPCL and HPCL.
(Chandan Taparia is Complex & Derivative Analyst at MOFSL. Buyers are recommended to consult with monetary advisers in advance of taking an investment phone calls centered on these observations)
F&O: Nifty trend turns optimistic it is a buy-on-dip market now
By Chandan Taparia