INSUBCONTINENT EXCLUSIVE:
The index continued to make lower lows for most part of the session and tested the 8,200 mark in intraday trade
Eventually, it concluded the session around the 8,250 mark and formed a Bearish Candle on the daily scale.
There was selling pressure across
the Street as all sectoral indices ended in the negative territory
IT and banking heavyweights led the fall
Traders should refrain from taking long positions
Going forward, Nifty has resistance placed at 8,555 and 8,888 levels, while supports are placed at 8,000 and 7,700.
On the monthly options
front, maximum Call open interest was place at 9,000 and then 10,000 levels, while maximum Put open interest was at 8,000 and then 7,500
Options data indicated an immediate trading range between 7,500 and 9,000 levels.
India VIX fell 6.03 per cent to 60.52 level
VIX is cooling down from higher levels, which may provide some stability
At the same time, supply is visible at higher levels.
Bank Nifty underperformed the benchmark index for the third consecutive session and
After an Inside Bar formation on Tuesday, the banking index breached the low of last two sessions and fell sharply towards the 18,000 mark
It formed a bearish candle on the daily chart, which resembled a Bearish Belt Hold pattern.
At its current juncture, the index is hovering
around the 61.80% retracement level of the recent bounce from 16,116 to 21,462 level
If Nifty breaks and sustains below the 18,000 mark, then we may see further correction towards 17,000 and 16,600 levels
On the flipside, Bank Nifty has resistance placed at 19,200 and 20,000 levels
Till the time, Bank Nifty sustains below 18,700 level, the bears will have an upper hand and we may see selling pressure on any
bounceback.
Nifty futures closed negative at 8,260 level with a loss of 4.19 per cent
There was marginal long build-up in Biocon, M-M Fin, Godrej CP and Hero MotoCorp while good amount of shorts were seen in Jindal Steel,
Kotak Bank, TVS Motor, Cummins, Shriram Transport Finance.
(Chandan Taparia is Technical - Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)