F&O: Nifty stuck between 11,500 & 11,700 levels; needs to hold support to go higher

By Chandan Taparia

Nifty50 opened positive on Friday but oscillated in a wide trading range between 11,500 and 11,650 levels. It formed a Hammer pattern on the daily scale and a small-bodied candle on the weekly chart, as buying emerged at lower levels while the hurdles remains intact.

The index has been stuck between 11,500 and 11,700 levels for last five sessions and now needs to hold its support to aim for the upper band of the trading range at 11,700, while a decisive hold below 11,550 can negate the current short-term bullish setup and take Nifty to its downside support in the 11,480 – 11,450 zone.


On the monthly options front, maximum Put open interest was at 11,000 followed by 11,500 levels, while maximum Call OI was at 12,000 followed by 11,700 levels. There was Call writing at 11,600 and then 11,550 levels, while Put writing was seen at 11,500 and then 11,550 level. Options data suggested a trading range between 11,450 and 11,750 levels.

India VIX fell 5.70% to 15.31.

Bank Nifty remained volatile and traded in a broad range of 500 points for most part of the session. It formed a Hammer pattern on daily scale, as dips got bought into while a long-legged Doji on the weekly scale suggested a tug of war between the bulls and the bears.

The index is finding multiple supports near 28,800 mark, while supply pressure remained intact at higher levels. Nifty has to hold above 29,200 to witness a bounce towards 29,700 level, while a hold below the same level may make it drift towards 29,000 and then 28,800 levels.

Nifty futures closed flat at 11,604 level. There was long buildup in Star, Glenmark, UBL, Sun TV and Cipla while shorts were seen in Cummins, Torrent Power, Bharti Infratel, GAIL and Marico.

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