INSUBCONTINENT EXCLUSIVE:
The index witnessed a remarkable recovery of more than 700 points from its intraday lows and, as a result, Nifty managed to close above its
This would be a sign of relief for the bulls.
The index also formed a positive candle on the daily chart with strong market breadth
However, it formed a Red Body Candle on the weekly scale, and ended the week with a loss of 12.15%, which is the biggest weekly loss since
At the current juncture, Nifty is sustaining below the Rising Trend Line breakdown level, the 100 EMA on the monthly chart, which is a
negative sign for the market.
But looking at the positive divergence of the RSI, a pullback move cannot be ruled out in the coming days
If Nifty sustains above the 8,888 level, then we may see an up-move towards 9,200 and then 9,600 levels
On the flipside, it now has major support at 8,200 and 7,800 levels.
On the options front, maximum Call open interest was at 12,000 and then
10,000 levels while Maximum Put OI was at 8,500 and then 8,000 levels
Options OI data lay scattered at various strike prices as some Put writers got trapped in the recent market fall
Even unwinding pressure could keep the Street under the pressure
There was Call writing at 10,000 and 9,500 levels while there was Put Unwinding at all immediate strike prices with minor Put writing at
Options data indicated a wider trading range between 8,200 and 9,200 levels.
India VIX fell 7.06 per cent to 67.10 level
A higher VIX beyond 60 level suggests volatile swings could continue in the market
Volatility has to cool down from current multiple-year high levels and only then will stability return and the market will see a smooth ride
VIX fell after the winning streak of nine consecutive sessions, which has provided some relief.
Bank Nifty underperformed benchmark Nifty
and moved higher by 1.17% due to a drop in banking heavyweight HDFC Bank
It formed a small body candle on daily chart
indecisiveness among the participants
Meanwhile, it formed a big bearish candle on the weekly chart as it fell 19.27% on a week-on-week basis, which is the biggest-ever weekly
fall for the banking index
It remained below its major support in the 20,500-20,600 zone on the monthly chart, which is the confluence zone of previous swing high and
the 61.80% retracement of its previous rally from 13,407 to 32,613
Now, Bank Nifty has to close above its immediate hurdle at 21,000 for a pullback move towards 22,500 and 23,500 levels
zone.
Nifty futures closed positive at 8,737 level with a 6.48% gain
PEL, IndiGo, Shriram Transport Finance, Naukri and Canara Bank.
(Chandan Taparia is Technical - Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
