INSUBCONTINENT EXCLUSIVE:
It formed a bearish candle on daily chart and witnessed sharp selling in the later part of the session.
It was making lower highs and lower
lows for last six sessions and was not ready to surpass any immediate resistance
Now if it sustains below 10,500 level, then weakness could drag it towards 10,350-10,333 zone
The index needs to negate the formation of lower highs and lower lows in order to get any short-term stability, else weakness could
persist.
On the options front, maximum Put open interest stood at 10,500, followed by 10,400, while maximum Call OI was at 10,800 followed
There was significant Call writing at strike price 10,500 followed by 10,600, which shift its resistance lower while Put unwinding happened
at 10,500 and fresh Put writing was seen at 10,400.
Options data suggests a shift in lower trading range between 10,350 and 10,550 levels
India VIX moved up 4.10 per cent to 14.16 level.
Bank Nifty remained rangebound compared with a sharp 100-point decline in Nifty50
The index has broken and closed near its three-day support at 10,700
If it forms a bearish candle and holds below 25,700, that could take Nifty towards 25,500 and then 25,250 levels, while on the upside,
hurdles exist in the 25,950-26,000 zone.
Nifty future closed negative with the loss of 1.27% at 10418
Built up of long position were seen in IGL, SBI, STAR, KPIT, Britannia and IDBI, while shorts were seen in BPCL, Tata Steel, SRF, Pidilite
Industries, Motherson Sumi, Century Textiles, CEAT, Eicher Motor and HDFC Bank.
(Chandan Taparia is Technical Derivative Analyst at Motilal
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
