Nifty index opened positive and extend its gains towards 11,630 zone, however it consolidated in range of 50 points for most part of the session being the last day of FY19.
It has been forming higher highs - higher lows from past four trading sessions and formed a Pin Bar on daily scale on March 29 while a strong bullish candle on weekly scale which suggests bulls are holding the tight grip on the market.
Now the index has to hold previous hurdle of 11,550 zone to extend its gains towards life time high of 11,760 zone while on the downside support is seen at 11,450 and then 11,380 levels.
Nifty has seen strong momentum during the week as witnessed buying interest from 11,300 to 11,630 zone.
India VIX moved up by 5.59 percent to 17.18 levels. VIX started to hold at higher levels so it requires a cool off to shift its base to higher zones.
On Option front, maximum Put open interest (OI) is at 11,500 followed by 11,000 strike while maximum Call OI is at 12,000 followed by 11,600 strike.
Call writing is at 11,700 followed by 12,000 strike while Put writing is at 11,500 followed by 11,600 strike price. Option band signifies a broader trading range in between 11,400 to 11,800 zones.
Bank Nifty made an new life-time high near to 30,500 zone. It has also given the highest daily close and formed a strong bullish candle on weekly scale which suggests sustain buying interest and tight grip of bulls in this rate sensitive index.
Now Bank Nifty has to continue to hold above 30,250 zone to extend the rally towards new higher uncharted territory of 31,000 while on the downside support is seen at 30,000-29,888 zones.
Stock specific positive set up in Siemens, BEML, Pidilite Industries, Titan, Voltas, Jindal Steel, PFC, REC and PSU banks. We have seen higher premium in deep out of the money strike so aggressive option traders can go with short strangle to get the benefit of the same.
(The author is Associate Vice President - Analyst-Derivatives at Motilal Oswal Financial Services Limited)Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.