INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index continued its weakness for the second consecutive session and slipped towards the 11,640 mark on
However, it recovered from the lows in last hour of volume-weighted average price buying on expiry settlement
The index formed a Hammer candle on the daily scale, which indicated that the decline again got bought into but the immediate hurdle at
11,777 is restricting its momentum.
Now, Nifty has to decisively hold above 11,666 to extend its move towards 11,777 while a drift below
Maximum Put OI was at 11,000 followed by 11,400 while maximum Call OI was at 11,800 and then 12,000
Early data suggests a trading range between 11,400 and 11,800.
India VIX fell 0.22 per cent to 12.41
Overall lower volatility suggests that the bulls are likely to hold a grip on the market.
Bank Nifty remained highly volatile due to monthly
expiry but managed to close above 28,100
It formed a Bearish Candle on the daily scale and formed a triple top pattern after finding hurdles multiple times near the 28,333-28,388
The index has been consolidating between 27,750 and 28,388 levels for last four weeks.
Now, it has to hold above 28,128 to extend its gain
towards 28,333 and then 28,500, while a hold below 28,000 could help it retest its immediate support at 27,750.
Nifty futures closed in the
negative at 11,678 with a loss of 0.25 per cent
Long buildup was seen in pharma, FMCG and metals stocks whereas shorts were seen in select private bank and auto stocks.
(Chandan Taparia is
Technical Derivative Analyst at Motilal Oswal Securities
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
