INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaThe Nifty50 index opened in the positive, but failed to surpass the 11,150 level and witnessed volatile swings, as it
drifted towards the 11,000 mark
However it recovered from the lows and closed with marginal losses ahead of the expiry of September series FO contracts.
The index formed a
bearish candle as it closed below the opening level even as price behaviour suggested that a tug of war and volatile swings could continue
between the bulls and the bears
Now, Nifty has to hold above 11,000 to witness a bounceback towards 11,080 and then 11,171 levels, while on the downside, supports are seen
at 10,980 and then 10,929 levels.
On the options front, maximum Put open interest stood at 11,000, followed by 10,800 level, while maximum
Call OI was at 11,200, followed by 11,100
There was Put writing at 11,000 followed by 10,950 while Call writing was seen at 11,200 and then 11,100 levels
The options band signified a wider trading range between 10,850 and 11,171 levels.
India VIX moved up 2.44 per cent to 17.08
Higher VIX suggested that volatile swings are likely to continue in the market.
Bank Nifty opened in the positive but formed an opening high
and remained in a trading range of 200 points for most part of the session
However, follow-up buying was missing at higher levels.
Now, it has to hold above 25,250 to witness an upward move towards 25,650 and then
25,800 levels, while on the downside, supports are seen at 25,000 and then 24,750 levels.
Nifty futures closed in the negative at 11,050
with a loss of 0.33 per cent
Long buildup was seen in MM Finance, UBL, UPL and Hindalco while shorts were seen in Motherson Sumi, Tata Motors, Tata Elxsi and Godrej
Consumer Products.
(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)
