By Chandan Taparia
The Nifty50 index managed to hold above 10,400 level and headed towards 10,470 on Thursday. It formed a bullish candle on the daily chart. Also it continued to form higher high for the ninth consecutive session. The index managed to close above its immediate hurdle at 10,420 and a decisive hold above 10,420 could extend its move towards 10,480 and then 10,525 levels.
On the downside, supports are seen at 10,380 and then 10,350 levels.
On the options front, maximum Put open interest stood at 10,300 followed by 10,000 strike, while maximum Call open interest was seen at 10,500 followed by 10,600 levels.
There was significant Put writing at 10,400 and 10,300 levels, which shifted the support base higher while Call unwinding was seen at all immediate strike prices, which created scope for further upside in the market.
The option band suggests an immediate trading range between 10,350 and 10,550 levels.
India VIX fell 1.09 per cent to 14.56. VIX has to cool down to extend its positive momentum.
Bank Nifty traded in the trading range of last session and respected its immediate hurdle at 25,250. It respected the previous days low and formed a bullish candle on the daily chart. Now it has to hold above 25,250 to start the next leg of upward move towards 25,500 and then 25,750 levels, while on the downside, major supports are seen at 25,000 and then 24,750 levels.
Nifty futures closed positive with a 0.38 per cent gain at 10.465. Long buildup was seen in TCS, NIIT Tech, UBL, Biocon, Voltas, Havells, Dish TV, HCL Tech and Tata Elxsi while shorts were seen in Apollo Hospital, Bata India, IGL, Hind Zinc, Adani Ports, Exide Industries, Oriental Bank of Commerce and Adani Enterprise.
(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)