F&O: Nifty50 must hold above 10,800 to extend move towards 11,000 level

By Chandan Taparia

The Nifty50 opened flattish and remained in a narrow range of 50 points for most part of the session. The index formed a Doji Candle on the daily scale, but managed to hold above its falling supply trend line by connecting swing highs of 10,985, 10,923 and 10,870 levels and its 50-DMA.

Now the index needs to hold above 10,800 to extend its move towards 10,985-11,000 zone, while on the downside support exists at 10,777.


On the options front, maximum Put open interest stood at 10,500 followed by 10,700 strike, while maximum Call OI was at 11,000 followed by 11,200 strike.

Put writing was seen at 10,900 strike, while Call unwinding was at most of the immediate strikes with minor Call writing at 11,200 strike. Options band signifies a higher shift in trading range in between 10,750 and 11000 levels.

India VIX moved up by 3.19 per cent to 16.07 level. Volatility needs to cool down further to get a decisive range breakout.

Nifty Bank managed to surpass its previous day high, but consolidated for the entire session. The index formed a small bodied candle on the daily scale, and now it must hold above 27,350 to witness an upmove towards 27,750, while immediate support exists at 27,150.

Nifty future closed flattish at the 10,921 level. Built-up of long positions were seen in KPIT, Concor, Torrent Pharma and Repco Home, while shorts were seen in Cummins India, Mindtree, Jubilant Food and Escorts.

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