F&O: Nifty50 support shifts higher, resistance at 10,080, 10,138 levels

Long buildup was seen on the counters of Pidilite Industries, Just Dial, NIIT Tech, IndusInd Bank and Bajaj Auto.Company SummaryNSEBSEPidilite IndustriesLoading data…

PEER COMPANIESHindalcoCeatBajaj AutoAshok LeylandEXPAND TO VIEW ALL By Chandan Taparia

The Nifty50 index opened in the positive and continued its upward move towards the 9,980 level. It decisively surpassed the immediate hurdle in the 9,928-9,950 zone and saw the highest daily close in 16 trading sessions.

It has been making higher lows for last three sessions and needs to hold above the 9,928 mark to extend its upward move towards 10,020 and the 10,050 levels, while on the downside, supports are shifting higher to 9,900 and then 9,850 levels.

On a weekly basis, the Nifty50 closed with a gain of 1.19 per centafter the consolidation breakout from its three weeks’ range between 9,750 and 9,944. However a long black candle made in the second week of August is still creating worries near the 10,080 level.

On the option front, maximum Put open interest for the September series stood at 9,700 followed by 9,800 while maximum Call OI was at 10,000 followed by 10,100. Options data suggests supports are shifting higher while lifetime high of 10,080-10,138 levels are still going to be a stiff resistance zone for Nifty to commence any upside movement.

India VIX fell 2.30 per cent to 11.67 and a decline in volatility has supported the index to get a stable move with followup buying interest. Now, VIX has to hold below 12.50 to get a smooth ride in the coming sessions.

Bank Nifty managed to hold above 24,300 and headed towards 24,500 level. It has to continue to hold above 24,250 to extend its upward move towards 24,750 and 25,000 levels while the 24,000 level is likely to act as a major support to hold this upward move.

Nifty futures closed in the positive with a gain of 0.67 per cent at 10,004.

Long buildup was seen on the counters of Pidilite Industries, Just Dial, NIIT Tech, IndusInd Bank, Bajaj Auto, Ashok Leyland, Asian Paint, Srtrasnfin, Suntv, Auropharma, Arvind, Drreddy, Hindalco, Dishtv, CEAT, etc. while shorts were seen in Powergrid, Hexware, IOC and IDEA, among others.

(Chandan Taparia is Technical & Derivative Analyst at Motilal Oswal Securities. Investors are advised to consult financial advisers before taking an investment calls based on these observations)

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