F&O: Option data points to wider range of trading at 11,650-12,250

By Chandan Taparia

NSE Nifty failed to surpass the previous day’s high and remained under pressure for most part of the session as it drifted towards the 11,777 level. The index negated the formation of higher highs and higher lows after two days and formed a Bearish Candle on the daily scale and Bullish Harami on the weekly scale.

Nifty now has to hold above 11,820 to witness an upmove towards 11,888 and then 11,929 while a hold below the same could drag it towards 11,720 then 11,650 zone.


On the option front, maximum Put open interest was at 11,500 followed by 11,000 strike while maximum Call open interest was at 12,000 followed by 12,500 strike. We have seen Put writing at 11,500 followed by 11,300 strike while Call writing was seen at 12,000 followed by 12,300 strike. Options data suggests a wider trading range at 11,650 to 12,250 levels.

India VIX moved up by 2.13 per cent to 14.95 level.

Bank Nifty failed to hold above 31,313, but consolidated in narrow range of 200 points during the session. It formed a Bearish Candle on the daily scale while Bullish Candle on weekly scale, which suggests followups were missing at the higher levels while dips were being bought into. Now the index has to hold above 31,000 to extend its move towards 31,500, while a hold below the same could drag it towards 30,800 and then 30,600.

Nifty futures closed negative with a loss of 0.55 per cent at 11,843 level. Builtup of long position were seen in Canara Bank, Union Bank, IDBI Bank, REC and ICICI Prudential while shorts were seen in Just Dial, DHFL, Strides Pharma Science , Bharat Finance and Jubilant FoodWorks.

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