By Chandan Taparia The Nifty50 index broke its consolidation range between 10,700 and 10,835 levels and remained under pressure for most part of the session.It formed a Bearish Belt Hold candle on the daily scale, which indicated that the bears are getting some grip on the market, as it is unable to surpass multiple hurdles in the 10,800-10,835 zone.If it sustains below 10,700 level, then weakness could be seen towards 10,620 level, while hurdles are seen at 10,750 and then 10,800 levels.On the options front, maximum Put open interest stood at 10,700 followed by 10,600 while maximum Call OI was at 11,000 followed by 10,900.There was Put unwinding at all immediate strike prices, while significant Call writing was seen at 10,800 and 10,700, which could restrict the upside momentum.
Option data suggests an immediate trading range between 10,600 and 10,750 levels.India VIX moved up 5.55 per cent at 13.51 level.
A spurt in VIX indicated limited upside as of now.Bank Nifty witnessed selling pressure towards 26,336 level and formed a bearish candle on the daily scale.
Nifty has broken its immediate support at 10,700 while Bank Nifty is still away from its major support at 26,250 level, which could provide a meaningful support to the rate-sensitive index.
It has immediate support at 25,250 while a major hurdle is seen at 26,750.Nifty futures closed in the negative at 10,671 with a loss of 0.89 per cent.
Long buildup was seen in Britannia, Godrej Consumers, Havells, Aurobindo Pharma, TCS, Hexaware, Dabur and Tech Mahindra while shorts were seen in Mahindra Finance, Shriram Transport Finance, Marico, Idea, Petronet LNG, Tata Motors DVR, Bajaj Auto, NTPC, Torrent Pharma and Glenmark.(Chandan Taparia is Technical Derivative Analyst at Motilal Oswal Securities.
Investors are advised to consult financial advisers before taking an investment calls based on these observations)