Bank Nifty formed a Big Bullish candle on daily as well as on weekly scale and surpassed it crucial hurdle of 28,500 zones.
The Nifty index managed to hold the 10,700 zone and witnessed a strong momentum for the most part of the session by heading towards the 11,380 zone. It formed a Big Bullish candle on the daily and weekly scale, and made a record historical intraday gains for the index in last many years.
It rallied by more than 600 points as its surpassed its multiple hurdle of 11,111 zones and extended towards next key levels of 11,333-11,380 zones. It has managed to reclaim its 50 DEMA and formed a short term bottom out process on Daily and Weekly scale with broad based buying across the sector. Now it has to continue to hold above 11,180 zones to extend its move towards 11,380 then 11,500 zones while on the downside supports are seen at 11,111 then 11,050 levels.
India VIX moved up by 9.07 percent from 14.12 to 15.40 levels. On the options front, Maximum Put Open Interest (OI) is at 11,000 followed by 10,800 strike, while maximum Call OI is at 11,200 followed by 11,300 strike.
Call Writing is seen at 11,600 followed by 11,400 strike, while Put Writing is seen at 11,000 followed by 11,200 strike. Options data suggests a shift in trading range in between 11,000 to 11,500 zones.
Bank Nifty managed to hold its multiple support of the 26,650 zone and witnessed sustained buying interest throughout the session as it gained nearly 2,200 points to close near the 29,000 zone. It formed a Big Bullish candle on the daily as well as on weekly scales, and surpassed it crucial hurdle of the 28,500 zone.
The index recorded its biggest intraday gain ever since its incorporation as it surged nearly 10 percent. Now it needs to hold above the 28,500 zone to witness a further momentum towards 29,500 then the 30,000 zone, while on the downside supports are seen at 28,388 then 28,000 zones.
Stock specific most of the heavyweight looks quite promising for the immediate up swing. We are positive on Kotak Mahindra Bank, ICICI Bank, HDFC Bank in private banking pace, Colgate Palmolive, Bata, Pidilite Industries, Titan, HUL in FMCG stocks, while HDFC Life and ICICI Prudential can see good traction.
The Author is Derivatives & Technical Analyst at Motilal Oswal.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.The Great Diwali Discount!
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