Technicals: Nifty making higher highs–higher lows from last three trading sessions

By: | Updated: June 29, 2016 4:52 PM

Nifty index opened gap up then tried to fill an opening gap but it managed to hold above 8,150 zones and headed towards 8,212 levels.

Sensex, Nifty, BSE, NSE Nifty index opened gap up then tried to fill an opening gap but it managed to hold above 8,150 zones and headed towards 8,212 levels. (Reuters)

Nifty index opened gap up then tried to fill an opening gap but it managed to hold above 8,150 zones and headed towards 8,212 levels. Now, it has immediate support at 8,150 then 8,080 mark while on the upside hurdle exists at 8,285-8,300 zones then fresh move towards 8,450-8,500 mark in the July month.

India VIX fell sharply by 8.88 per cent at 16.15 mark with rising Put-Call Ratio which again giving comfort to bulls.

Index has taken support near to its 50 DEMA on closing basis and now has been making higher highs–higher lows from last three trading sessions.

On the option front, maximum Put OI is at 8,000 followed by 8,100 strike while maximum Call OI is at 8,300 followed by 8,400 strike. We have seen fresh and aggressive Put writing at 8,200 strike which suggest that market may hold above 8,150-8,180 zones while may head towards its crucial hurdle of 8,242 zones.

Nifty is trading slightly higher to its series VWAP ( volume weighted average price) of 8,167 and Bank Nifty is also trading above its series VWAP of 17,617 levels. VWAP may also act as a support for both the indices on expiry trading day.

Bank Nifty has been holding the gains from last three trading sessions and moving upwards. It has support at 17,500 then 17,350 zones while hurdle at 17,750-17,800 then 18,000 zones.

(The author is derivatives analyst, equity research at Anand Rathi Financial Services)

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