INSUBCONTINENT EXCLUSIVE:
By Chandan Taparia The Nifty50 index continued to decline amid profit booking for the second consecutive session on Tuesday and corrected
The index witnessed a recovery from the lows midway through the session, only to see a selloff as many heavyweight witnessed profit
booking.
The index formed a Bearish Belt Hold candle for the second session in a row, as it slipped below its rising support trend line
It also engulfed the positive price movement of last two weeks and partially filled the gap near the 11,499 mark
As long as it holds below 11,620, Nifty may drift towards its next support at 11,450 while on the upside a hurdle is seen at 11,620
level.
On the options front, maximum Put open interest was at 11,500 followed by 11,400, while maximum Call OI was at 11,800 and then 12,000
Meaningful Call was writing seen at 11,800 followed by 11,700 while Put unwinding was seen at all immediate strike prices.
India VIX moved
up 2.93 per cent to 13.78 and a sudden jump in volatility in last two sessions became a cause of concern on an immediate basis.
Bank Nifty
broke its crucial 19-session support at 27,750 and corrected sharply by around 400 points to close the session near the 27,430 mark
It underperformed the benchmark index and formed a Bearish Candle on the daily scale, which suggests the bears are having a tight grip on
If it sustains below 27,750, Nifty may see weakness towards 27,250 and then 27,165 levels.
Nifty futures closed negative with a loss of 0.52
Long buildup was seen in Infosys, Mindtree, TechM, TCS and HDFC while shorts were seen in Balkrishna Industries, Berger Paints, Dabur, CEAT,
Godrej Consumers, Oriental Bank and Sun TV.
(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)
