By Chandan Taparia
The NSE Nifty50 opened in the positive zone and made a fresh lifetime high of 11,460 during the session on Wednesday. The index managed to hold gains for the entire session and formed a Bullish Candle on the charts. It closed at its highest level ever.
Small declines are being bought in, as the supports are gradually shifting higher. Now it has to continue to hold above 11,380 zones to extend move towards 11,500 and then 11,600 zones, while on the downside major supports are seen at 11,300 and then 11,250 zones.
On the option front, maximum Put OI is at 11,000 followed by 11,200 strike, while maximum Call OI is at 11,500 followed by 11,400 stri ke. We have seen fresh Put writing at 11,300 followed by 11,400 strike whereas Call writing is seen at 11,700 followed by 11,600 strike.
India VIX remained flattish at 12.57. Overall lower volatility suggests that bulls are likely to hold a grip on the market.
Bank Nifty has been making higher lows from the last four sessions and made a new lifetime high at 28,128. The index formed a Bullish Candle on daily charts with the highest-ever daily closing ahead of weekly expiry day. Now it has to hold above 27,900 zones to extend its move towards 28,250 zones while major support is seen at 27,650 zones.
Nifty futures closed positive with a gain of 0.46 per cent. Built up of long positions were seen in STAR, Voltas, RCom, NIIT Tech, Karnataka Bank, Ajanta Pharma, Tata Elxsi and SBI, while shorts were seen in Lupin, Divis Labs, BPCL, Arvind, BEML and IGL.
(Chandan Taparia is Technical & Derivative Analyst at Motilal Oswal Securities. Investors are advised to consult financial advisers before taking an investment calls based on these observations)