By Chandan Taparia The Nifty50 index remained under pressure on Thursday and witnessed sustained selling throughout session.
It formed a bearish candle on daily scale and slipped towards 10,650 mark.
It has been making lower highs and lower lows since last two sessions, as it failed to surpass crucial hurdle in 10,925-10,985 zone.As long as it holds below 10,777 level, Nifty can remain under pressure with downside support at 10,600 and then recent swing low of 10,535, while on upside, hurdle is seen in 10,777-10,820 zone.On options front, maximum Put open interest was at 10,500 followed by 10,000 while maximum Call OI was at 11,000 followed by 11,500.
There was Call writing at 11,000 followed by 10,900 levels, while Put unwinding was seen at most of immediate strike prices.
The option band signified a broader trading range between 10,500 and 10,900 levels.India VIX moved up 2.44 per cent to 16.79 level.
It saw a spike, which is not giving comfort to bulls and is creating selling pressure at every bounceback.Bank Nifty has been forming lower highs since last two sessions and selling pressure was seen near 27,200-27,350 zone.
It formed a bearish candle on daily scale.
If it holds below 27,000 level, then index may drift towards 26,850 and then 26,666 levels, while on upside, a hurdle is seen in 27,250-27,350 zone.Nifty futures closed in negative at 10,715 level with a loss of 1.06 per cent.
Long buildup was seen in Torrent Pharma, Marico and Bank of India while shorts were seen in Eicher Motor, ONGC, MM and Jindal Steel.(Chandan Taparia is Technical Derivative Analyst at MOFSL.
Investors are advised to consult financial advisers before taking an investment calls based on these observations)