INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index on Monday opened with a gap up but failed to hold in the opening zone and drifted sharply towards the
11,567 level in the last half-an-hour of trade
It broke its rising support trend line by connecting all the recent swing lows and slipped below its immediate support at 11,620 level.
The
index formed a Bearish Belt Hold candle on the daily chart, as it made its opening high and closed near the lowest part of the session
Now, it has to cross and hold above 11,620 and 11,666 levels to get stability, else it may even drift towards the next support in the
11,500-11,450 zone.
Nifty witnessed a sharp cut of around 184 points from its opening high and made its biggest negative daily candle in
last many sessions, which indicated that the bears are back in action to pause the positive momentum.
On the options front, maximum Put open
interest was at 11,600 followed by 11,400 while maximum Call OI was at 11,800 and then 12,000
There was meaningful Call writing at 11,800 followed by 11,700 whereas Put activities were seen at 11,800, 11,700 and 11,600.
India VIX saw
a 6.29% spike to 13.39 and a sudden jump in volatility was a cause of concern on an immediate basis.
Bank Nifty opened positive, but
followup buying was missing at higher levels
It witnessed selling pressure towards 27,777 level
The index formed a Bearish Engulfing pattern on the daily scale, which indicated that the bears are having an upper hand.
The index has been
consolidating between 27,750 to 28,388 levels for last 19 sessions and now if it decisively breaks below 27,750, then it may open the
downside towards 27,500-27,440 zone while the hurdle shifted to 28,128 level.
Nifty futures closed in the negative at 11,623 with a loss of
Long buildup was seen in Canara Bank, PC Jeweller, Wipro, Ashok Leyland and Engineers India whereas shorts were seen in Balkrishna
Industries, Escorts, Repco Home, DCB Bank and Bajaj Finance.
(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)
