Nifty index negated its formation of lower highs lower lows of the last six trading session by surpassing its previous day’s high of 10,104 and headed towards 10,180 zones.
It closed the day with a decent gain of 123 points and formed a Bullish Belt Hold candle on the daily chart. Now if it sustains above 10,118-10,094 then bounce back could extend to 10,250-10,300 zones, while on the downside major support is seen at 10,050 zones.
On the option front, maximum Put open interest is at 10,000 followed by 9,800 strike, while maximum Call OI is at 10,500 followed by 10,400 strike. We have seen Call unwinding in 10,100 to 10,300 strike, while fresh Put writing is seen at 10,000 and 10,100 strikes.
India VIX fell down by 5.42 per cent to 14.27. Decline in VIX from higher levels has given relief to bulls and market recovered smartly from lower zones.
Bank Nifty managed to close positive with a gain of 0.83 per cent and negated its negative formation after the lower top lower bottom of last the seven trading sessions. Now if it sustains above 25,100 zones, then bounce back could be seen towards 25,200 then 25,500, while on the downside support exists at 25,000 then 24,750.
Nifty futures closed with a gains of 1.37 per cent at 102,06. Built up of long position were seen in GAIL, IDEA, Voltas, Havells, Maruti Suzuki, IGL, Torrent Pharma, M&M Fin, Mindtree, DLF, Granules, Mothersumi, Sun TV, Tech Mahindra, Bharti Airtel, TVS Motors and Tata Elexsi while shorts were seen in Hexaware, Jubilant Foods, IRB, NIIT Tech, KSCL and Glenmark.
(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)