INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaNSE Nifty started the session with marginal gains and moved higher in the initial trades on Monday
But, the index failed to sustain at higher levels and faced selling pressure at around the 12,150 level
It remained in the negative territory for the major part of the day, and formed a bearish candle on the daily chart.
The index continued its
selling streak for a third consecutive session and closed a tad below its immediate support of 50-DEMA
At the current juncture, we are observing the formation of a Bullish Harmonic pattern called Bullish Shark on the hourly chart and Potential
12,000, and if Nifty holds above that, then we may see an upmove towards 12,250.
On the options front, maximum Put open interest was at
12,000 followed by 11,800 strike, while maximum Call OI was at 12,500 followed by 12,300 strike
Call writing was mainly seen at 12,100 followed by 12,300 strike, while Put unwinding was seen at immediate strike with minor Put writing at
Options data indicates an immediate trading range between 12,000 and 12,300 levels.
India VIX moved up by 5.84 per cent at the 14.41
level.
Bank Nifty continued its corrective move for a third consecutive session, in which it has corrected more than 1,000 points from its
recent swing high of 31,649
The banking index is hovering around its support of 50 per cent retracement level of the recent upmove from 29,612 to 31,649, which is
If it manages to hold above 30,500, then we may witness an upmove towards 31,200, and then 31,500
On the flipside, major support below 30,500 mark is placed at 30,200.
Nifty futures fell 0.41 per cent to 12,080
Long builtup was seen in Muthoot Finance, Balkrishna Industries, Manappuram, Mindtree and Torrent Pharma, while shorts were seen in LIC
Housing Finance, Glenmark, NCC, Sun TV and Tata Global.
(Chandan Taparia is Technical - Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)