F&O: Vix rises further; Nifty must top 11,700 for next leg of rally

By Chandan Taparia

Nifty opened positive on Monday and consolidated between 11,650 t o 11,700 levels for most part of the session. It formed a Small Bullish Candle on the daily scale. It has been forming higher highs and lows for last two sessions. The index has been consolidating between 11,550 to 11,760 levels from last 12 sessions and now requires to hold and sustain above the same to retest its lifetime high of 11,761 and then 11,888 levels while on the downside crucial support is intact at 11,550 level.

On the option front, maximum Put OI was at 11,500 followed by 11,000 while maximum Call OI was at 12,000 followed by 11,800 strike. Put writing was seen at 11,700 followed by 11,600 level while there was Call writing at 11,700. The option band signifies a trading range between 11,550 and 11,750 levels.

India VIX moved up 1.85 per cent to 21.28 level. A sudden spike in VIX indicates limited upside with volatile swing in the market.

Bank Nifty managed to hold above 30,000 and remained consolidative for most part of the day but failed to cross the 30,250 level. It formed a Bullish Candle on the daily scale and supports gradually shifted higher. Now it has to hold above 30,000 to witness an upmove towards 30,250 and then 30,500 levels while on the downside major support is seen at 29,700 and then 29,500 levels.

Nifty futures closed positive with a gain of 0.22 per cent at 11,729 level. Long buildup was seen in IGL, Just Dial, Vguard and Indigo while shorts were seen in DCB Bank, Infy, Arvind and Canara Bank.

(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)