F&O: Options show Nifty trading band broadens to 11,500-12,000

69112487 69112250 69110896 By Chandan TapariaNifty remained highly volatile and traded in a wide range between 11,650 and 11,750 levels for most part of Tue sday’s session. It formed a Dragonfly Doji on the daily scale, as it recovered nearly 80 points from its intraday low in the last hour of day.The index is hovering near the 11,550 – 11,750 zone from past six sessions and some follow-up buying could take it towards a new lifetime high of 11,850 and 12,000 levels while on the downside support is seen at 11,666.On the options front, maximum Put open interest stood at strike price 11,000 followed by 11,500, while maximum Call OI was at 12,000 followed by 12,500 levels. There was minor Call writing at 12,200 while Put writing was seen at 11,800 followed by 11,500 levels. The option band signified a broader trading range between 11,500 and 12,000 levels. India VIX moved up 0.49 per cent to 21.82 level.Bank Nifty is finding multiple supports near 29,500 level but supply pressure is intact near 30,000 level. It formed a Hammer kind of candle on the daily scale, as some buying interest was visible at lower levels. As long as it holds above 29,500 level, Bank Nifty could extend its gains towards 30,000 mark, while on the downside, support is seen at 29,500 level.Nifty futures closed negative with a loss of 0.21 per cent at 11,789. Long buildup was seen in PVR, Raymond, Pidilite and HCL Tech while shorts got created in Biocon, Canara Bank, YES Bank and L& T Finance.(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)

from Economic Times http://bit.ly/2V550bX