INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaNifty opened negative on Saturday but failed to hold its opening recovery and fell sharply towards the 11,633 level on
It failed to hold the psychologically important 12,000 mark and corrected 300 points, marking its biggest fall since October 5, 2018.
Nifty
has been making lower tops and bottoms and formed a big bearish candle by settling around its 200-day EMA
Nifty corrected 4.79 per cent on a weekly basis, which was among the three biggest weekly falls in last eight years
As of now, there is no sign of trend reversal on the charts, and thus, the ongoing correction may continue take Nifty towards 11,500 and
Traders should refrain from bottom fishing at these levels and wait for data to signal a trend reversal as the short- as well as medium-term
trend has turned negative.
Options data lay scattered at various strike prices at the start of new derivative series
Maximum Put open interest was at 12,000 followed by 11,500 level, while Maximum Call OI was at 12,200 followed by 12,500 levels
Call writing was seen at 12,200 followed by 12,000 levels while there was Put unwinding at most immediate strike prices
Options data indicated a lower trading range between 11,300 and 11,900 levels.
India VIX fell 3.08 per cent to 16.83 level
Volatility is likely to cool off at higher levels as the major event of Union Budget 2020 gets out of the way, but any change in trend and
the bear grip could keep the volumes high.
Bank Nifty posted the biggest daily loss since April 2016 and formed a big bearish candle on the
It kept on making lower lows as the session progressed and closed below its crucial support at 200-day EMA
Bank Nifty continued its bearish momentum into the third consecutive week and formed a bearish candle on the weekly chart.
The overall
sentiments remained damp and the chart structure turned negative due to a sharp selloff in the banking space
The immediate resistance for Bank Nifty is placed at 30,200 and 30,600 levels
The index can continue its pessimism towards its next support at 29,400 and then 29,000 levels.
Nifty futures closed with a sharp cut of
3.04 per cent at 11,629 level
On sectoral front, except some gain in the IT index, all other sectorial indices including Media, Financial Services and Realty,
nosedived.
(Chandan Taparia is Technical - Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)