F&O: Option data suggests trading range between 10,700 and 10,900

By Chandan Taparia

Nifty index remained in a range of 40-50 points for the entire session and closed on a flattish note ahead of Karnataka election result.

The index formed a Spinning Top candle on daily scale, which suggests absence of followup buying at crucial zones. However it continued the formation of higher lows for last six trading sessions, which suggests that supports are gradually shifting higher. Now, till it holds above 10,785 zones, it can extend its move towards 10,888 and then 10,950 zones, while on the downside supports are seen at 10,725 and then 10,680 levels.


On the options front, maximum Put OI is at 10,500 followed by 10,700 strike, while maximum Call OI is at 11,000 followed by 10,800 strike. We have seen Put writing at 10,700 followed by 10,800, which is shifting support to higher zones, while Call writing is seen at 10,100 then 10,900 strikes. Option data suggests an immediate trading range between 10,700 to 10,900 zones.

India VIX moved up by 1.93 per cent to 14.25 levels.

Bank Nifty opened flattish and remained rangebound for the entire session. It formed a small bodied candle on the daily scale, but continued its higher highs-higher lows formation of the last four sessions. Now, till it holds above 26,250, it can extend move towards 26,750-26,850 zones, while on the downside, supports are seen near to 26,100 levels.

Nifty futures closed negative with a loss of 0.11 per cent at 10,807. Builtup of long position were seen in Canara Bank, Sun TV, NTPC, Power Grid, Gail, South Bank, Hindustan Unilever and BPCL, while shorts were seen in Tata Global, Adani Ports, Voltas, Rel Infra, PC Jeweller, Ashok Leyland, PTC and Mindtree.

(Chandan Taparia is Technical & Derivative Analyst at Motilal Oswal Securities. Investors are advised to consult financial advisers before taking an investment calls based on these observations)