F&O: Nifty50 finding support at lower levels; India VIX rises 6%

By Chandan Taparia

NSE Nifty managed to hold its 50-DMA near 11,250, but remained volatile throughout the session, as it traded in a 120-point on Thursday. The index formed a Long Legged Doji on the daily scale, as it is finding support at lower levels, while supply pressure was intact at higher levels.

Now till the index holds below 11,380-11,400, weakness could be seen towards swing low of 11,250 and then 11,200, while on the upside, hurdle was intact at 11,500 and then 11,550.


On the options front, maximum Put open interest was at 11,000 followed by 11,500 strike, while maximum Call OI was at 11,500 followed by 12,000 strike. Call writing was seen at 11,400 followed by 11,800 strike, whereas marginal Put writing was seen at 11,000 then 11,200 strike.

Option data suggests a wider trading range between 11,200 and 11,700 levels.

India VIX moved up by 5.61 per cent to 17.70 level.

Bank Nifty formed an Inside Bar on the daily scale, as it traded in the range of the previous session. The index got stuck in a wider trading range of 500 points for most part of the session, but buying was visible near 28,250 while supply pressure was seen near 28,750. It relatively underperformed the benchmark index. Now till the index holds below 28,750–28,800, weakness could be seen towards its swing low of 28,000, while on the upside, hurdle was seen at 29,000 and then 29,250.

Nifty futures fell 0.59 per cent to 11,361. Builtup of long positions were seen in YES Bank, BPCL, RBL Bank and IOC, while shorts were seen in Manappuram Finance, Indiabulls Housing Finance, Justdial and Nalco.

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