F&O: Options band signifies Nifty range between 10,600 and 10,750

By Chandan Taparia

The Nifty50 index failed to hold above the 10,700 level and remained under pressure for most part of Monday’s session. It formed a bearish candle on daily scale, which reflected selling at higher levels.

Now, as long as Nifty holds below 10,660, it can slip towards 10,600 and then 10,550 levels, while on the upside, hurdles are seen at 10,700 and then 10,770 levels.


On the options front, maximum Put open interest was at 10,600 followed by 10,500, while maximum Call OI was at 11,000 followed by 10,800. There was Put writing at 10,500 followed by 10,600, while Call writing was seen at 11,000 and then 10,900. The options band signified a trading range between 10,600 and 10,750 levels.

India VIX moved up 3.94 per cent to 13.37 level.

Bank Nifty failed to cross Friday’s high and slipped towards 26,050 level. It formed a Hammer kind of candle on daily scale, which suggests any decline was being bought into. As long as it remains below 26,250, Nifty could slip towards 26,100 and then 25,950 levels, while on the upside, hurdles are seen at 26,500 level.

Nifty futures closed in the negative at 10,647 level with a 0.44 per cent loss. Long buildup was seen in ICICI Bank, Vedanta, Titan and Amara Raja Battery whereas shorts were seen in JSPL, Bharti Airtel, Nalco and L&T Finance.

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