Optimism short-lived as volatility reappears

Nifty index opened positive and touched a fresh life high of 26325 zones in the first tick but witnessed profit taking thereafter.

- Motilal Oswal Team

It broke its previous day’s lower levels but dips are positioning as opportunity to buy in the overall uptrend. It formed a bearish belt hold sort of candlestick pattern on the daily frame as it failed to cross its opening highs for the rest of the day. Now it has to hold above 26100 zones for momentum to extend towards 26250 then 26325 zones while supports are shifting higher to 26100 and then 26000. On option front, Maximum Call OI is at 26300 then 26200 strike while Maximum Put OI is at 26000 then 26100 strike. Call writing is seen at 26300 then 26200 strike while Put writing is seen at 26150 then 26100 strike. Option data suggests a broader trading