F&O: Nifty again forms higher highs & lows; Vix signalling bullish stance
India VIX slipped 0.98 per cent to 15.12 level. It has been hovering near the 15 mark.
The Nifty50 opened positive on Thursday but consolidated in a range between 11,320 and 11,380 levels for most part of the session as the weekly F&O contracts expired.
The index formed a bearish candle on the daily scale, as it closed below the opening levels. The index has been forming higher highs and lows for last three sessions. On an immediate basis, the index has to hold above 11,280 to extend its upward move towards the 11,400-11,450 zone, while on the downside, support exists at 11,280 and then 11,222 levels.
On the options front, maximum Put open interest was at 11,000 followed by 11,200 while maximum Call OI was at 11,500 followed by 11,400 levels. There was Put writing at 11,300 followed by 11,200 levels, while Call writing was seen at 11,400 followed by 11,500. The options band signified a shift in higher trading range between 11,150 and 11,450 levels.
India VIX slipped 0.98 per cent to 15.12 level. It has been hovering near the 15 mark, but has recently declined from higher levels, which is supporting the overall bullish stance.
Bank Nifty opened positive and hit a fresh lifetime high of 29,070. However, it failed to hold above the 29,000 mark and slipped marginally towards the 28,800 level. It later recovered from lower levels but formed a bearish candle on the daily scale. Now, it has to hold above 28,688 to extend its momentum towards a new lifetime high of 29,000 and then 29,250 levels, while on the downside, major support exists at 28,500 and then 28,388 levels.
Nifty futures closed positive at 11,387 with a gain of 0.18 per cent. Long buildup was seen in Escorts, Just Dial, Tata Global and Muthoot Finance while shorts were seen in Repco Home, SRF, ACC and TVS Motor.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
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