F&O: Options show Nifty50 trading range shifts to 13,700-14,100 zone

0
42
F&O: Options show Nifty50 trading range shifts to 13,700-14,100 zone


Nifty opened with a gap up on Monday supported by positive momentum in the global market and continued strengthening for the fourth consecutive session in a row. The index formed its lifetime high at 13,885 and managed to hold at higher levels. It moved in a range of 75 points and settled the day with a gain of 124 points. The index formed a bullish candle on the daily scale and has been making higher lows from the last four sessions. Now, it has to hold above the 13,750-13,777 zone to witness a fresh rally towards a new lifetime high of 14,000 and then 14,200 levels, while on the downside, major support exists at 13,700 and 13,600 levels.

India VIX moved up 2.77% from 19.96 to 20.42 levels. Stability in volatility is supporting the bullish market setup. VIX needs to hold below 19 level to help the bulls continue their grip on the market.

On the options front, maximum Put open interest stood at 13,000 level followed by 13,500, while maximum Call OI was at 14,000 followed by 14,500 levels. There was Call writing at 14,500 and then 14,200 levels, while meaningful Put writing was seen at 13,800 and then 13,700 levels. Options data suggested an immediate trading range between 13,700 and 14,100 levels.

Bank Nifty opened with a gap up and saw strength build up throughout the day. It continued its rise towards the 30,900 level and saw good momentum in banking stocks, closing the day 1.57% higher. The index formed a bullish candle on the daily scale and continued to form higher highs and lows for the third session. Now it has to hold above 30,500 level to witness a bounce towards 31,200 and 31,500 levels, while on the downside, support exists at 30,200 and 30,000 levels.

Nifty futures closed positive with 0.96% gain at 13,896 level. The trade setup looked positive in SAIL, Indiabulls Housing Finance, Tata Motors, JSW Steel, SBI, Titan, Chola Finance, Dabur, Pidilite Industries, UltraTech Cement, Siemens, Kotak Bank, Bajaj Auto, Asian Paint and TCS but weak in Biocon, MRF and Cummins India.

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





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here