F&O: Bulls holding a tight grip on market; major support at 11,780

By Chandan Taparia

Nifty50 consolidated for most part of Friday’s session, as it traded in a narrow range of 70 points. The index formed a Doji candle on the daily chart and a Bullish candle on the weekly scale, which indicated that the major trend is positive while dips are being bought into on an immediate basis.

Nifty has been forming higher highs and lows on the weekly scale and supports are gradually shifting higher. Now it has to continue to hold above 11,820 level to witness a bounce towards 11,950 level and then 12,000-12,103 zone, while on the downside major support is seen at 11,780 and then 11,700 levels.


On options front, maximum Put open interest was at 11,600 followed by 11,500 levels while maximum Call OI was at 11,800 followed by 12,000 levels. There was Put writing at 11,300 and 11,700 levels while Call writing was seen at 12,100 followed by 12,000 levels. Options data suggested a broader trading range between 11,600 and 12,100 levels.

India VIX fell 3.36% to 15.73 level.

Bank Nifty continued its positive momentum for the sixth consecutive session, but traded inside the trading range of previous day with major support at 30,000 level. It formed a bullish candle on the daily and weekly scales, which suggested that the bulls are holding a tight grip. It has been forming higher highs and lows on the weekly scale, while respecting its rising support trend line on the daily scale. Supports are shifting higher gradually. It has to hold above 30,000 level to head towards the major swing high of 30,800 while on the downside support is seen at 29,750 level.

Nifty futures closed positive at 11,936 with 0.48% gains. Long buildup was seen Marico, Sun TV, Dish TV and Bajaj Finserv while shorts were seen in IndiGo, Bank of India, Just Dial and UBL.

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