By Chandan Taparia
The Nifty50 index opened flat and remained rangebound for the entire session. It formed an Inside Bar on the daily scale and a Bullish Candle on the weekly scale, which suggested buying interest at lower levels.
Now, it has to hold above 10,700 to extend its move towards 10,880 and then 10,929 levels, while on the downside support exists at 10,650 and then 10,600 levels.
On the options front, maximum Put OI was at 10,000 followed by 10,200 level, while maximum Call OI was at 11,000 followed by 10,900. There was Put writing at 10,800 followed by 10,700 while Call writing was seen at 11,000. The option band signified a trading range between 10,650 and 10,929 levels.
India VIX fell 3.21 per cent to 15.05 levels. It has seen a sharp cut of 28 per cent in last four sessions which suggests the bulls are getting a grip on the market with the expectation of limited downside.
Bank Nifty traded in a narrow range of 150 points for most part of the session and formed an Inside Bar Candle on the daily chart and a Bullish Candle on the weekly scale. Now it has hold above 26,666 to extend its gains towards 27,000 and then 27,200 levels, while on the downside, support is seen at 26,500 and then 26,350 levels.
Nifty futures closed flat at 10,821 with a loss of 0.03 per cent. Long build-up was seen in Motherson Sumi, Canara Bank, India Cement and Colgate Palmolive while shorts were seen in Arvind, Torrent Pharma, Chola Finance and UBL.
(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)
[contf] [contfnew] 
ET Markets
[contfnewc] [contfnewc]
