F&O: Nifty positions suggest big tug of war between bulls & bears

By Chandan Taparia

Nifty50 had a volatile session on Friday as it drifted towards the 11,770 mark. But it bounced back sharply by rising over 100 points and settled near the opening level.

The index formed a Dragon Fly Doji on the daily scale and a Spinning top candle on the weekly chart, which indicated a tug of war between bulls and the bears.


Now it has to hold above 11,888 to get some stability and move towards the 12,000 – 12,041 zone, while on the downside, support is seen at 11,761 and then 11,660 levels.

On the options front, maximum Put open interest was at 11,500 followed by 11,000 levels while maximum Call OI was seen at 12,500 followed by 12,000. Minor Call writing was seen at 12,500 followed by 12,100 level, while there was Put unwinding at all immediate strike prices. The option data suggested a wider trading range between 11,750 and 12,250 levels.

India VIX fell 4.86 per cent to 14.77 level.

Bank Nifty opened positive and moved in a wider trading band of 500 points for the entire session. It formed a Hammer candle on the daily scale and an Inside Bar on the weekly scale, which implied that the bulls are not loosening their grip at lower levels. At the same time, the bears are putting pressure at higher levels. Now, it has to surpass and hold above 31,150 level to witness an upward move towards 31,500 and then 31,750 levels, while on the downside, support is seen at 30,500 and then 30,250 levels.

Nifty futures closed flattish at 11,886. There was long buildup in Voltas, V-Guard, Apollo Hospitals, Just Dial and PFC while shorts were seen in Manappuram Finance, Biocon, CG Power, MGL and Kajaria Ceramics.

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