By Chandan TapariaThe Nifty50 index failed to hold above 10,900 and drifted sharply towards 10,735 mark on Wednesday.
It formed a bearish candle on daily scale and negated formation of higher highs of last four sessions.
It remained highly volatile during day and again moved closer to its 50-day EMA.Nifty has been moving in a rising channel and finding multiple hurdles near 10,950-10,985 zone from last couple of session.
Now, it has to hold above 10,777 to witness an upward move towards 10,850-10,888 zone, while on downside, support exists at 10,650-10,600 zone.On options front, maximum Put OI was at 10,500 followed by 10,000 level while maximum Call OI was at 11,200 followed by 11,000 level.
There was Call writing at 11,000 followed by 11,200 levels, while Put writing was seen at 10,500 followed by 10,600 level.The option band signifies a broader trading range between 10,650 and 11,000 levels.
India VIX moved up 6.97 per cent to 16.39.
VIX has again spiked, which is not giving any comfort to bulls.Bank Nifty failed to surpass its previous days high and witnessed selling pressure at higher levels.
It formed an Inside Bar on daily scale and managed to close above 27,000 mark.
Now, it has to hold above 27,000 to witness an upward move towards 27,350 and then 27,500 levels, while on downside, support exists at 26,850 and then 26,666 levels.Nifty futures closed in negative with a loss of 1.23 per cent at 10,825.
Long buildup was seen in BEML, Federal Bank, Asian Paints, IGL, BEL and Sun Pharma while shorts were seen in Eicher Motor, TVS Motor, Hindalco, Jet Airways, Tata Steel, Ashok Leyland and MM.(Chandan Taparia is Technical Derivative Analyst at MOFSL.
Investors are advised to consult financial advisers before taking an investment calls based on these observations)