By Chandan Taparia
NSE barometer Nifty opened positive and traded in a range of 10,830-10,920 for the entire trading session on Friday.
It has been making higher highs and higher lows for the last four trading sessions on a daily scale and formed a Big Bullish Candle on the weekly scale, which suggests that the bulls are having a tight grip on the market.
Now, it has to continue to hold above 10,777-10,800 zones to extend its move towards 10,929 and then psychological 11,000 while on the downside major support is seen at 10,650 levels.
On the options front, maximum Put OI is at 10,000 followed by 10,200 strikes while maximum Call OI is seen at 11,000 followed by 11,500 strike. Call writing is seen at 11,100 and 10,900 strike while Put writing is seen at 10,700 followed by 10,800 strike. The options band signifies a broader trading range between 10,750 and 11,000.
India VIX moved up by 2.49 per cent to 19.1. However, it has to cool down below 17-16 zones to have a smooth ride and surpass the psychological 11,000.
The Bank Nifty remained consolidative for the most part of the trading session and closed near 26,850 zones. It formed a Bullish Candle on a weekly scale, making higher highs for the past five weeks, which implies that strong buying is witnessed at lower levels. Now, it has to hold above 26,666 zones to extend its move towards 27,200 and then 27,500.
Nifty futures closed positive with gains of 0.23 per cent at 10,914 levels. Build-up of long positions were seen in Repcohome, Bata India, Hero Motocorp, Torrent Power and Page Ind while Shorts were seen in Oil India, NTPC, Coal India and IOC.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment call based on these observations.)