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Nifty50 opened with marginal gains and moved in a narrow range of 60 points throughout Wednesday’s session. It formed a small green body candle on the daily chart and closed a tad above the 12,100 level to mark the highest-ever daily close.
The index is sustaining well above the breakout of the Bullish Pennant pattern, which certainly bodes well for the bulls. Till the time Nifty sustains above the 11,980 – 12,000 zone, we maintain our bullish stance on the market for an upward move towards 12,200 and 12,280 levels. On the downside, support remains intact at 11,920 and then 11,850 levels.
In monthly options, maximum Put open interest was at 12,000 followed by 11,900 levels, while maximum Call OI was at 12,100 followed by 12,200 levels. There was meaningful Put writing at 12,100 and then 12,050 levels while marginal Call writing was seen at 12,200 and then 12,150 levels. Options data suggested a shift in trading range between 11,980 and 12,200 levels.
India VIX fell 1.50 per cent to 14.61 level. Now it needs to hold below 15 level to surpass the recent high and extend the fresh high territory.
In line with the benchmark indices, Bank Nifty opened with gains and remained in a narrow range throughout the session. The banking index made a new all-time high and closed at a record level of 31,876. It is making higher highs for the seventh consecutive week, which clearly shows strength in the index. It closed well above the horizontal trend line and support is now inching higher towards the 31,500 – 31,400 zone. On the upside, the immediate resistance is at 32,200 and 32,400 levels.
Nifty futures closed positive at 12,123 level with a gain of 0.40%. Long buildup was in L&T Finance, RBL Bank, Biocon, Equitas and Marico while shorts were seen in Dish TV, NCC, L&T, Siemens and Cipla.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
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