F&O: Nifty50 must sustain above 11,980-12,000 zone to keep rising

Nifty50 opened positive on back of favourable cues from global bourses and made a new lifetime high of 12,132 in the early hours of the session. However, the index turned highly volatile in the latter part of the session, as it traded in wide range between 12,006 and 12,130 levels.

The index formed a Small Bearish Candle on the daily scale, as it closed below the opening level. But the overall trend remains positive, and thus, we continue our buy-on-dips strategy. Now, Nifty has to sustain above the 11,980 – 12,000 zone to witness an up-move towards the 12,132 and 12,200 levels, while supports remained intact at 11,920 and 11,850 levels on the downside.

India VIX fell 1.08 per cent to 14.83 level. Now VIX needs to hold below 15 mark to surpass the recent high and extend the fresh high territory.

Bank Nifty opened with a gap up and extended its gains to make a new lifetime high at 31,850 level. It relatively outperformed the benchmark index and managed to close above 31,700. However, it formed a Doji candle on the daily scale, as it closed near its opening mark.

The overall trend remains positive and it now needs to hold above 31,500 level to witness an up-move towards 31,850 and then make a fresh rally towards 32,000 level. On the downside, support is placed at 31,500 and then 31,200 levels.

Nifty futures closed flattish at 12,098 level. Long buildup was seen in Just Dial, Motherson Sumi, Biocon, GAIL and Bharat Forge while shorts were seen in Zeel, BHEL, Castrol, RBL Bank and Glenmark.

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