Nifty50 opened positive and extended its gains towards the 11,945 mark, but witnessed some profit booking in the last hour of trade. The index made a Shooting Star kind of formation led by small-bodied and long upper shadow candles on the daily scale. Supports remained intact, but supply pressure emerged at higher levels. The index has gained nearly 300 points in past few sessions and some consolidation is likely at higher levels before it heads into a higher territory.
Overall, the medium-term trend is positive. Now, the index has to hold above 11,780 level to witness an up-move towards 11,950 level and then 12,000-12,103 zone, while on the downside a major support exists at 11,700 level.
Since it’s the start of a new series, options data remains scattered at various strike prices. Maximum Put open interest was at 11,600 followed by 11,500 levels, while maximum Call OI was at 11,800 followed by 12,000 levels. There was Put writing at 11,300 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 fell 2.28 per cent to 16.28 level.
Bank Nifty continued its positive momentum for the fifth consecutive session and extended its gains towards the 30,400 level. However it failed to hold the gains at higher levels and drifted towards the 30,000 mark in the latter part of the session. The index formed a Bearish Candle on the daily scale, as it closed below its opening mark but managed to hold near the 30,000 level. Now it has to hold the 29,750 level to witness an up-move towards 30,500 and then 30,800 levels, while on the downside support is seen at 29,500 level.
Nifty futures closed positive at 11,879 level with 0.33 per cent gains. Long buildup was seen in auto, energy, select IT and financials stocks while shorts were seen in pharma and media sectors.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)