INSUBCONTINENT EXCLUSIVE:
However, it failed to fill its opening gap during the session and witnessed selling pressure on a bounceback move near the 11,400 level.
The
index formed a bearish candle, but traded near its rising support trend line by connecting all the recent swing lows of 10,557, 10,630,
Now, it has to cross and hold above 11,400 to get a consolidative move while a decisive hold below 11,350 could drift the index towards
11,250 and then the next major support at 11,171.
On the options front, maximum Put open interest was at 11,000 followed by 11,200, while
maximum Call OI was at 11,500, followed by 11,400
There was fresh Call writing at 11,500 and 11,400 while marginal Put writing was seen at 11,200.
India VIX moved up 4.28 per cent to 13.40
A spurt in VIX suggested that the upside is going to be capped on an immediate basis.
Bank Nifty formed a bearish belt hold candle followed
by a bearish engulfing pattern on the daily scale
It slipped below 28,128 and corrected towards 27,739
If it sustains below 28,128, then weakness could continue towards 27,650 and then 27,440 levels, while resistance is seen at 28,000
level.
Nifty futures closed in the negative with a loss of 0.46 per cent at 11,386
Long buildup was seen in Apollo Hospital, Page Industries, Hexaware, NIIT Tech, OFSS, UBL and GAIL while shorts were seen in Sun TV, Canara
Bank, India Cement, Ambuja Cement, IOC, IGL and Shriram Transport Finance.
(Chandan Taparia is Technical Derivative Analyst at Motilal
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
