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Futures & Options rollover data suggests Nifty could hit a fresh high in August series

The index has to hold above 15,750 to witness an up move towards 15,962 and then towards 16,200, while on the downside, key support levels are 15,600 and 15,500, said Chandan Taparia of Motilal Oswal Financial Services

July 30, 2021 / 09:39 AM IST

Nifty closed the July series on a flattish note at 15,778 compared to the June close at 15,790 levels. It remained range-bound for most part of the series with a broader trading range of 15,513 to 15,962.

During the series, the index saw sustained buying interest on decline near the support level of 15,550-15,600 zones while the follow-up was clearly missing beyond 15,900 zones.

Now, the index has to hold above 15,750 to witness an up move towards 15,962 and then towards 16,200, while on the downside, key support levels are 15,600 and 15,500.

India VIX fell by 14.27 percent in this (July) series from 15.10 to 12.94 levels. However, during this week we witnessed a spike towards 15.98 levels but that was swiftly cooled off due to support-based buying activities.

Overall, lower volatility suggests that meaningful declines could be bought and the market could head towards a new lifetime high.

Close

Options data is scattered with various far strikes. The maximum Put OI (open interest) is placed at 15,000 followed by 15,500 strikes while maximum Call OI is seen at 16,000 followed by 15,800 strikes.

Options data suggests a broader trading range of 15,500 to 16,000.

Bank Nifty closed the July series with a marginal loss of 0.39% at 34,691 levels. It remained in a broader trading range of 34,100-36,000 while slight underperformance was seen in this rate-sensitive index.

Now, it has to hold above 34,750 to move up towards 35,250 and 35,500 zones while on the downside, key support exist at 34,250-34,100 zone.

Sector-wise positive rollover activity was seen in metals, IT, selective private banks and PSU banks, while shorts were seen in auto and pharma stocks.

The index has seen more of time correction in the last two months which is a healthier sign for a broader market.

Now, the overall data and price setup suggests that consolidation could end soon, and the next leg of the rally may commence for a new lifetime to high cheer the Dalal Street.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Chandan Taparia is the Vice President and Analyst-Derivatives at Motilal Oswal Financial Services Limited.
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