F&O: Nifty50 range shifts higher to 16,750-17,500 zone; VIX rises too

Nifty on Thursday opened positive and moved in an unilateral manner throughout the day. It crossed its previous day’s high to mark another record high at 17,245. The bulls were seen quite active for most part of the day, and Nifty closed with a decent gain of around 160 points.

It formed a bullish candle and continued to make higher highs and lows since the last four trading sessions. Now it has to hold above 17,150 level to extend the move towards 17,400 and 17,500 levels, while on the downside, support is seen at 17,050 and 16,900 levels.

India VIX moved up 0.42 per cent from 14.18 to 14.24 levels. Stability in volatility and declines from higher levels suggest the bulls are holding a tight command on the market.

On the options front, maximum Put open interest stood at 16,500 followed by 17,000 levels, while maximum Call OI was seen at 17,500 followed by 17,000 levels. There was Call writing at strike prices 17,200 and then 17,400, while Put writing was seen at 17,200 and then 17,000 levels. Options data suggested a broader trading range between 16,750 and 17,500 levels, while the immediate trading range stood between 17,000 and 17,500 levels.

Bank Nifty opened positive and moved in the upward direction for most part of the day with slight consolidation in the latter half. The momentum in the banking stocks sustained the index at higher levels and helped it close near the 36,850 level with a gain of around 250 points. The index formed a bullish candle on the daily scale and took support near to previous day’s low of 36,500 level. Now it has to hold above 36,800 to witness a bounce towards 37,250 and 37,500 levels, while on the downside support was seen at 36,500 and then 36,250 levels.

Nifty futures closed positive with a gain of 0.95 per cent at 17,260 level. Among specific stocks, the trade setup looked bullish in Concor,

, India Mart, ABFRL, LTTS, Polycab, Mindtree, Havells, , MCX, IRCTC, India, ICICI Pru, TCS, M&M Financials, Godrej Consumer Products, Dabur, HUL, ACC, Navin Fluorine International, Pfizer, , Nestle India, Kotak Bank, , DLF, Ambuja Cement, SBI Life, Britania and IndiGo, but weak in M&M, and Bajaj Auto.

(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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