NSE Nifty failed to surpass the previous day’s high and consolidated for most part of the session near the 11,900 mark. The index has got stuck in a broader 11,785-12,034 band from the past 13 sessions and requires a decisive breakout on either side to commence the next leg of rally.
The headline index formed a small bodied candle followed by Doji candle on the daily scale, which indicates lack of participation. Now, the index has to continue to hold above 11,850 to witness an upmove towards 11,950 and then 12,000, while on the downside, major support is seen at 11,780.
On the monthly options front, maximum Put open interest (OI) was at 11,600 followed by 11,500 strike while maximum Call OI was at 12,000 followed by 11,900 strike. We have seen Call writing at 12,000 followed by 11,900 strike, while marginal Put writing was seen at 11,800 and then 11,900 strike.
Option data suggests a broader trading range between 11,700 and 12,100 levels.
India VIX moved up by 4.82 per cent to the 15.75.
Bank Nifty opened flattish, but failed to surpass its immediate hurdle at 31,200 and finally closed on a flattish note near 31,000. The index formed a Doji candle on the daily scale and has been forming higher highs and higher lows from the past five weeks. Price pattern suggests that major trend is positive, but at the same time, the pace of buying and momentum is missing. Now, the Bank Nifty has to hold above 30,800 to witness an upmove towards 31,250 and then 31,500, while on the downside, major support is at 30,400.
Nifty futures closed negative with a marginal loss of 0.15 per cent at 11,925. Builtup of long positions were seen in Glenmark, PFC, Bharti Airtel, CESC and MFSL, while shorts were seen in Siemens, YES Bank, Wipro, ONGC and Asian Paints.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)