F&O: Options show Nifty may hold between 11,350 & 11,500

By Chandan Taparia

The Nifty50 index managed to respect its rising support trend line by connecting all the swing lows of 10,557, 10,630, 10,946 and 11,3 40 levels. It formed a bullish candle and filled the supply gap by closing near the 11,435 level.

Now, it has to hold above 11,400 to extend its move towards 11,500 and then 11,600 levels, while on the downside, immediate support is seen at 11,350 level.


On the options front, maximum Put open interest was at 11,000 followed by 11,200, while maximum Call OI was at 11,500 followed by 11,600. There was meaningful Put writing at 11,400 and 11,500 levels, whereas Call writing was seen at 11,700, followed by 10,600.

The option band signified a hold in the current trading band between 11,350 and 11,500 and then 11,600 levels.

India VIX fell 0.88 per cent to 13.28.

Bank Nifty opened positive and managed to rebound towards 28,050 level. It respected its immediate support of 27,750. A hold above 28,000 can take it towards 28,128 and then 28,333 levels, while the immediate support is placed in the 27,800-27,750 zone.

Nifty futures closed positive with a 0.73 per cent gain at 11,463. Long buildup was seen in OFSS, Page Industries, Bata India, Sun Pharma, Tata Communications, Apollo Hospital, CEAT, SRF and Amar Raja Battery while shorts were seen in Allahabad Bank, Cadila, IGL, Shriram Transport Finance, Syndicate Bank, Engineers India and BPCL.

(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)