F&O: Nifty breaks consolidation range, looks ready to top 10,000
It has to continue to hold above 9,928 to witness an upward move towards 10,000 and then 10,100.
By ET CONTRIBUTORS | Updated:
By Chandan Taparia
The Nifty50 index managed to surpass the previous high of 9,928 and made a new lifetime high of 9,982. It broke out of the consolidation of last seven sessions and closed with a gain of around 50 points.
The index formed a Bullish Candle at new high and is just shy of testing the historic 10,000 mark. Now, it has to continue to hold above 9,928 to witness an upward move towards 10,000 and then 10,100 levels, while on the downside, supports are seen at 9,880 and then 9,850 levels.
On the options front, maximum Put open interest stood at strike prices 9,800 and 9,900 while maximum Call OI was at 10,000 followed by 10,100. Significant Put writing was seen at strike prices 9,900, 9,950 and 10,000, which suggests an extension of this upward move, while fresh Call writing at strike prices 10,050 and 10,100 is shifting the hurdle to higher levels.
Rising Put-Call ratio and a breakout of the consolidation at new highs and Put writing at in-the-money strike prices suggest the market is now all set to cheer the 10,000 mark.
India VIX moved up 2.10 per cent to 11.31, but overall lower volatility is not showing any sign of trend reversal.
The Bank Nifty continued its upward move and made a new lifetime high of 24,460. It has been outperforming the Nifty index for the past couple of sessions and registered the highest daily close above 24,400.
The Bank Nifty started witnessing fresh Put writing at strike prices 24,300 and 24,400 while unwinding of Call options at strike price 24,500 could propel the index to higher levels. It has support at 24,200 and then 24,000 levels while holding above 24,500 level could take the Nifty50 towards 25,000 level in the coming sessions.
Long buildup was seen on the counters of Asian Paints, M&M Finance, Dabur, Tech Mahindra, Cipla, Bharti Airtel, Pidilite Industries, Bank India, Allahabad Bank and Union Bank, while shorts were seen in KPIT, Axis Bank, Divi’s Lab, Havells, Dr Reddy’s and VEDL, among others.
(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)
The Nifty50 index managed to surpass the previous high of 9,928 and made a new lifetime high of 9,982. It broke out of the consolidation of last seven sessions and closed with a gain of around 50 points.
The index formed a Bullish Candle at new high and is just shy of testing the historic 10,000 mark. Now, it has to continue to hold above 9,928 to witness an upward move towards 10,000 and then 10,100 levels, while on the downside, supports are seen at 9,880 and then 9,850 levels.
On the options front, maximum Put open interest stood at strike prices 9,800 and 9,900 while maximum Call OI was at 10,000 followed by 10,100. Significant Put writing was seen at strike prices 9,900, 9,950 and 10,000, which suggests an extension of this upward move, while fresh Call writing at strike prices 10,050 and 10,100 is shifting the hurdle to higher levels.
Rising Put-Call ratio and a breakout of the consolidation at new highs and Put writing at in-the-money strike prices suggest the market is now all set to cheer the 10,000 mark.
India VIX moved up 2.10 per cent to 11.31, but overall lower volatility is not showing any sign of trend reversal.
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The Bank Nifty continued its upward move and made a new lifetime high of 24,460. It has been outperforming the Nifty index for the past couple of sessions and registered the highest daily close above 24,400.
The Bank Nifty started witnessing fresh Put writing at strike prices 24,300 and 24,400 while unwinding of Call options at strike price 24,500 could propel the index to higher levels. It has support at 24,200 and then 24,000 levels while holding above 24,500 level could take the Nifty50 towards 25,000 level in the coming sessions.
Long buildup was seen on the counters of Asian Paints, M&M Finance, Dabur, Tech Mahindra, Cipla, Bharti Airtel, Pidilite Industries, Bank India, Allahabad Bank and Union Bank, while shorts were seen in KPIT, Axis Bank, Divi’s Lab, Havells, Dr Reddy’s and VEDL, among others.
(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)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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