INSUBCONTINENT EXCLUSIVE:
By Chandan Taparia The Nifty50 index opened in the negative and slipped towards the 10,250 mark amid continued selling pressure
It has been making lower highs and lower lows on the weekly scale and tanked around 1,500 points in last five weeks
It has formed a bearish candle on daily and weekly scales, which suggests the bears are holding a tight grip on the market
Nifty has seen the lowest weekly close in last 26 weeks.
As long as it holds below 10,500, the Nifty50 may continue to extend weakness
towards 10,200 and the psychologically important 10,000 levels, while on the upside, the medium-term hurdle is shifting from 10,850 to
front, maximum Put open interest stood at 10,500 followed by 10,700 level, while maximum Call OI was at 11,000 followed by 11,200 level
Significant Call writing was seen at 10,500, 10,600, 10,700 and 10,800 levels, while Put unwinding was seen at all immediate strike prices
Put unwinding at 10,500 level could trigger more pressure to shift its band towards 10,200 mark
The options band signified a shift in lower trading range while the immediate hurdle is seen at 10,500 and 10,650 levels.
India VIX moved up
4.29 per cent to 19.73 level
Volatility is not cooling down, which is not giving any relief to the bulls
It suggests a tight bear grip on the market
India VIX surged 16 per cent this week and it has been moving upward from last three consecutive weeks.
Bank Nifty remained in a range in
It has been making lower top and lower bottom on the weekly scale, and approaching its March 2018 low of 23,600 mark
As long as it remains below 25,000, Bank Nifty could continue its weakness towards 24,000 and then 23,600 levels.
Nifty futures closed in
the negative with a loss of 3.18 per cent at 10,293
Longs were seen in Titan, Infosys and TCS while shorts were seen in HPCL, IOC, BPCL, ONGC, Gail, Ashok Leyland and many more frontline and
midcap stocks as the index gradually shifted lower.
(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)
