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    F&O: Doji signals tussle between bulls and bears near 11,250 level

    Synopsis

    It closed positive, but formed a Doji candle, which indicated a tussle between the bulls and bears in the market near the immediate hurdle at 11,250 level.

    By Chandan Taparia

    Nifty opened with decent gap on Thursday and continued its positive to rangebound bias for most part of the session. However, it declined to the 11,130 level after RBI’s money policy, but the bulls managed to use the decline as a buying opportunity to take it back towards 11,200 zone.

    It closed positive, but formed a Doji candle, which indicated a tussle between the bulls and bears in the market near the immediate hurdle at 11,250 level. The index has been making higher lows since last three sessions and supports are shifting higher slightly. Now, it has to continue to hold above 11,100 level to witness an up-move towards the recent swing high of 11,333-11,350 and even higher zones, while on the downside support exists at 11,050 and then 11,000 levels.

    India VIX fell 1.78 per cent to 23.15 level. A decline in VIX from its recent bounce of 25.69 suggests the bulls are using every decline as a buying opportunity and the overall trend remains bullish.

    Maximum Put open interest is now at 11,000 followed by 10,000 level, while maximum Call OI was at 11,500 followed by 12,000. Minor Call writing was seen at 11,600 and 11,700 levels, while there was Put writing at 11,000 and then 10,800 levels. Options data suggested an immediate trading range between 11,000 and 11,400 levels in the coming few days.

    Bank Nifty opened positive, but after a roller-coaster ride, it once again failed to hold above 21,900 level and drifted towards 21,500 level. It closed positive, but formed a Doji as it closed near the opening levels and hovered near its 50-day EMA, which indicated a tug of war at key levels.

    Technical indicators are on the verge of turning upside and it requires decisive followup action to confirm the next momentum. Now if the index manages to hold above 21,500 level, then a bounce could be seen towards 22,000 and then 22,250 levels, while on the downside immediate support is seen at 21,250 and then 21,000 levels.

    Nifty futures closed positive at 11,210 level with 0.83 per cent gain. The trade setup was positive in NIIT Tech, Aurobindo Pharma, Glenmark, Tata Steel, Infosys, TVS Motor, ICICI Pru, Jubilant Foodworks and TCS while it was weak in BHEL, IndiGo and Canara Bank.

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



    (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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