Option band suggests Nifty50’s trading range at 11,000 to 11,550

By Chandan TapariaNSE Nifty opened flattish, but gradually extended gains and surged 150 points to close above the 11,400 level ahead of exit poll results. The index formed a big bullish candle with a reversal of the Harami formation on the daily scale as sustained buying interest was seen on Friday.The index now needs to hold above the 11,350 level to extend gains towards 11,500 and then 11,550. On the downside, supports are seen at 11,250 and then 11,180.On the options front maximum Put open interest was seen at 11,000 followed by 11,500 strike while maximum Call OI stood at 12,000 followed by 12,500 strike.Call writing was seen at 11,800 followed by 11,400 strike, while Put writing at 11,000 strike. Option band signified a wider trading range between 11,000 and 11,550 levels.India VIX fell down 1.01 per cent to the 28.07 level. However, higher VIX suggests that volatile swings could continue in the market ahead of election outcome.Bank Nifty witnessed strong buying momentum throughout the session and gained nearly 600 points to close above 29,450. The index formed a bullish candle on the daily scale as it surpassed crucial hurdle of 29,250. Till it holds 29,250, it could extend its move towards 29,850 and then 30,000, while on the downside, supports are seen at 29,000 and then 28,888.Nifty futures rose 1.38 per cent to the 11,440 level. Built-up of long positions were seen in Just Dial, Bajaj Finserv, Arvind, Tata Chemical and Bajaj Finance while shorts were seen in Aurobindo pharma, Bank of India, Siemens and Lupin.(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)

from Economic Times http://bit.ly/2VrlBC9