Strong support at 14,060

F&O OUTLOOK

Analysts are bullish as the market undertone is positive, given the comfortable level of Nifty's implied volatility and PCR as well as positive cost of carry across the board.

Zeal Mehta, analyst at Emkay Share and Stock Brokers, says any correction is likely to serve as an opportunity to buy. The implied volatility (IV) of Nifty January options dropped to 17-19 per cent from 26-28 per cent levels earlier.

During the week, the Nifty moved above its resistance level of 4100 with good volumes and sustained above those levels. It registered a high of 4140, after which the market witnessed a correction.

According to analyst at HDFC Securities, the Sensex's upmove has given the confidence that the uptrend is intact and any knee-jerk reactions such as the one seen in the last two trading sessions will be a good opportunity to buy into the markets.

The Sensex is heading towards 5289 and the Nifty towards 4489 levels in the coming weeks. On the downside, the Sensex has strong support kicking in at 14060-13875 levels, which will most likely halt any downmove.