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By Chandan Taparia

NEW DELHI: The Nifty50 index opened positive, but failed to hold above 11,500 and slipped towards the 11,400 level. However, it recovered from the day’s low and closed near its opening levels to form a long legged candle, which is similar to a spinning top. The index has been forming higher highs and higher lows from the past six trading sessions, and now it has to continue to hold above 11,400 to extend its move towards 11,550, while on the downside, support exits at 11,380 and then 11,333. On the options front, maximum Put OI stood at 11,000 followed by 10,700 strike, while maximum Call OI was at 11,500 followed by 11,600 strike. Put writing was seen at 11,500 followed by 11,400 strike while Call writing was at 11,600 followed by 11,700 strike. Option band signifies a shift in trading range to 11,300-11,600 levels. India VIX moved up by 6.56 per cent to 16.90. Volatility has spiked by around 10 per cent in the last two sessions and rising VIX could halt positive momentum. Nifty Bank opened positive and hit a fresh lifetime high of 29,812. The index has been making higher lows from the past 12 sessions. It formed a Spinning Top on the daily scale, which suggests followup is required. The index has to continue to hold above 29,250 to extend move towards life time high of 29,800 and then 30,000, while on the downside, major supports exist at the 29,000-28,888 zones. Nifty futures closed with a gain of 0.37 per cent at 11,513 levels. Built-up of long positions were seen in Justdial, BEML, PVR and BPCL while shorts were seen in Lupin, V-Guard, Hero MotoCorp and CEAT. (Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)