INSUBCONTINENT EXCLUSIVE:
The bears were aggressive from early hours of trade and dragged the index below the 11,100 mark in first half of the session
However, there was a tremendous recovery in the latter half, as a result of which the index trimmed-off most of the intraday
losses.
Eventually, the index formed a Hammer kind of candle on the daily chart, signalling buying interest at lower levels
Currently, the index is hovering around its key support at the rising trend line, which also coincides with the 78.60 per cent retracement
level of the previous rally from 10,637 to 12,430 levels
Now, the index needs to decisively move above 11,333 level for a pullback towards 11,433 and 11,500 levels
On the down side, support exists at 11,111 and then 11,035 levels.
On the options front, maximum Call open interest stood at 12,000 and then
11,800 levels, while maximum Put OI was at 11,000 and then 11,300 levels
Marginal Call writing was seen at 11,600 and then 11,300 levels, while there was Put writing at 11,000
Options data indicated a broader trading range between 10,800 and 11,600 levels.
India VIX fell 1.28 per cent to 24.22 level
However, it continues to sustain above the horizontal trend line on the daily scale, and thus, volatile swings may continue in the coming
days.
Bank Nifty opened with marginal gains and started correcting right from the word go
The banking index witnessed a fall of more than 1,100 points from its opening price on the back of a sharp fall in the shares of HDFC Bank
The index underperformed the benchmark index and formed a bearish candle on the daily chart.
Currently, it is hovering near its rising trend
line and 100 EMA on the weekly scale
opportunity.
Nifty futures closed negative at 11,247 level with a loss of 0.42 per cent
like Shriram Transport Finance, Motherson Sumi, PVR, Bajaj Finance and Eicher Motors.
(Chandan Taparia is Technical - Derivative Analyst at
Investors are advised to consult financial advisers before taking an investment calls based on these observations)