F&O: Call, Put writings show D-Street readying for Nifty50 to top 12,000

The Nifty50 index opened positive and extended its gains towards the 11,989 mark on Monday then finally closed with a gain of around 50 points. However, the index failed to surpass the psychologically important 12,000 mark and witnessed some consolidation with a bullish bias.

The index has been forming higher highs and lows on the weekly scale and supports are gradually shifting higher. Now, it has to hold above the 11,880 mark to witness an up-move towards 12,000 and then 12,103 levels, while on the downside major support is seen at 11,780 level.

In monthly options, maximum Put open interest was at 11,600 followed by strike price 11,500, while maximum Call OI was at 12,000, followed by 11,800 level. There was Put writing at 11,600 and 11,700 levels, while Call writing was seen at 12,100 followed by 12,000 levels. Options data suggested a broader trading range between 11,600 and 12,100 levels.

India VIX moved up 1.24 per cent to 15.92 mark.

Bank Nifty continued its positive momentum for the seventh consecutive session and headed towards the 30,600 mark. However, it failed to hold the gains and closed on a flat note near the 30,300 mark. The index has been making higher highs and lows on the daily and weekly scales, and respecting its rising support trend line on the daily scale.

Supports are gradually shifting higher. Now it has to hold above 30,000 mark to head towards the major swing high of 30,800, while on the downside support is seen at 29,750 level.

Nifty futures closed positive at 11,989 level with a gain of 0.51 per cent. Long buildup was seen Chola Finance, Jindal Steel, Yes Bank, Tata Steel, CESC and Infosys while shorts were seen in Cadila Healthcare, Apollo Tyre, ZEEL, IOC and MGL.

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