The benchmark Nifty index continued to witness weakness in Wednesdays session after giving up over 400-point intraday gain on Tuesday.
The 50-pack opened with a gap down and remained volatile through the session before closing 60.75 points down at 10,741.
The index opened the day at 10,751 and touched an intraday high and low of 10,790 and 10,699, respectively.
In the process, it formed a Spinning Top of the daily chart.It also formed a lower highs and lows compared with that in the previous session and closed below the low point of the previous session, indicating a negative bias.Milan Vaishnav, Technical Analyst, Gemstone Equity Research and Advisory said the market continued to remain tentative in Wednesdays session.
In the process, it formed a Spinning Top of the chart.
It had a small real body and signalled indecisiveness among market participants.We expect some stability to return on Thursday.
If Nifty manages to defend the low point of 10,699, it may see some technical pullback.
However, with no runaway expected, it may continue to consolidate for some more time.Mazhar Mohammad, Chief Strategist Technical Research Trading Advisory, Chartviewindia.in said the index may continue to remain uncertain and vulnerable to the political developments in the near term.Based on larger trends, it appears the Nifty50 is in a consolidation phase from the high point of 10,784 hit on May 2, which requires it to slip below 10,601 to culminate a corrective structure before resuming any uptrend, he said.On the options front, maximum Put open interest (OI) stood at 10,500 followed by 10,700, while maximum Call OI was at 11,000 followed by 10,800.
There was Put unwinding at strike price 10,800, followed by 10,700 while Call writing was seen at strike prices 10,800 and 10,900.
Options data suggests an immediate trading range between 10,650 and 10,888, said Chandan Taparia, Derivatives Technical Analyst, Motilal Oswal.