F&O: Put writers take control of market, may lift Nifty even higher

By Chandan Taparia The Nifty50 failed to hold above the 9,620 level and corrected towards the 9,560 mark. It has been making lower lows from the past five consecutive sessions and resistance levels are shifting lower. The index formed a Bearish Belt Hold pattern on the daily chart and closed below the immediate support at the 9,580 level. Now, if it sustains below 9,580, then selling pressure could be seen towards 9,550 and 9,530 levels, while it needs to cross and hold above 9,620 level to witness a bounceback towards multiple hurdles at 9,650 and 9,680 levels.

By Chandan Taparia The Nifty50 index opened in the positive and witnessed a strong bounce, rallying more than 150 points. The index made a strong bullish candle on the daily chart by negating the formation of lower highs in last three sessions. The index has almost engulfed the price consolidation of last five sessions and closed strongly above the 9,500 mark. Now, it has to hold above the 9,550 level to witness an upward move towards 9,600 levels, while on the downside supports are seen at 9,420 and 9,380 levels.

NEW DELHI: The Nifty50 closed above its crucial support levels at 8,650 and 8,665 on Friday, which is a positive sign, but it also means that the index will come face to face with its next major resistance level at 8,700. Options activity suggests fresh Put writing at 'in-the-money options' is likely to lend support to the index when the market resumes trading on Monday.

NEW DELHI: The Nifty50, which surpassed its crucial psychological level of 7,900 earlier this week, lost some momentum in Wednesday's trade, but strike prices 7,800 and 7,900 will provide adequate support to the indices in case it starts drifting southward, options data showed. Fresh Put writing was seen at strike prices 7,700 (8.8 lakh contracts added), 7,800 (25.61 lakh contracts added) and 7,900 (13.16 lakh contracts added), which will provide the much-needed support in case Nifty50 starts correcting, options data collated on Monday showed.

By Chandan Taparia The Nifty50 index failed to hold above the 9,650 mark and corrected towards the 9,600 level. It formed an ‘Inverted Hammer Candle’ on the daily chart and saw the lowest daily close in 11 sessions. The index started forming lower lows since last three sessions, but got stuck in a trading range of 100 points. Now, if it sustains below the 9,580 level, then selling pressure could be seen towards 9,550 and 9,530 levels. On the upside, immediate hurdles are seen at 9,650 and 9,680 levels.

NEW DELHI: The Nifty50 closed above its crucial psychological level of 8,650 on Tuesday, which forced many traders to cover their short positions. There was hardly any Call writing, but Put writing was seen at strike prices 8,600 and 8,700. Put option activity: Marginal Put writing was seen at strike price 8,400 (3.1 lakh contracts added), followed by 8,500 (0.7 lakh contracts added), 8,600 (12.54 lakh contracts added) and 8,700 (4.2 lakh contracts added). Put unwinding or closing of existing positions was seen at strike price 8,300 (7.8 lakh contracts shed).

NEW DELHI: The Nifty50 made an impressive comeback on Thursday after falling for last six sessions on the trot. The bulls convincingly managed to defend the 7,600 level and the market bounced back led by a short-covering bounce. The Nifty50 futures saw some short coverings, which pushed the index over the 7,700 mark. It closed with a premium of 27.45 points compared with spot closing. The January series closed with a premium of 64.05 points. The open interest in Nifty50 futures fell by 2.92 per cent, indicating some short coverings.

NEW DELHI: Tuesday appeared to be a day of consolidation for the benchmark equity indices, as the Nifty50 moved in an extremely narrow range of 33 points. The key takeaway from the session was that the 50-stock pack managed to hold on to the gains witnessed in the previous session. The index opened the session at 9,670 and touched a high and low of 9,676 and 9,643, respectively, before closing almost flat at 9,353. It formed a small-bodied candle on the daily charts.