NSE Nifty opened positive, but consolidated in a range of 70 points for most part of the session between 11,950 and 12,020 levels on Thursday. The index formed a Pin Bar candle on the daily scale, as dips were being bought into, finally managing to close above psychological 12,000 level.
The headline index has been respecting the rising support trend line and supports are gradually shifting higher. Now, till the index holds above 11,920-11,950, it can witness an upmove towards its recent life time high of 12,103 and then higher levels. On the downside, support is seen at 11,850 and then 11,780.
On the monthly options front, maximum Put Open Interest was at 11,600 followed by 11,500 strike while maximum Call OI was at 12,000 followed by 12,300 strike. We have seen Put writing at 11,900 and 11,700 strike, while Call writing was seen at 12,300 followed by 12,400 strike. Options data suggest a broader trading range between 11,800 and 12,200 levels.
India VIX fell by 3.63 per cent to 15.20 level.
Bank Nifty opened positive and extended gains towards 30,820 mark in the initial hour of the session. However, it consolidated in a wider trading range of 400 points for most part of the day, but ended on a flattish note near 30,600. The index formed a small Bodied candle on the daily scale and supports are gradually shifting higher. Now, it has to continue to hold above 30,400 to witness an upmove towards 30,800, and then 31,250, while on the downside support is seen at 30,250 and then 30,000 zone.
Nifty future rose 0.40 per cent to 12,055 level. Builtup of long positions were seen in Max Financial Services, Colgate Palmolive, Jindal Steel, LIC Housing Finance and Jubilant FoodWorks, while shorts were seen in Apollo Tyre, Voltas, Lupin, Bank of Baroda and Manappuram Finance.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)