By Chandan Taparia NSE benchmark Nifty witnessed one of its most volatile sessions, as it opened positive, but failed to hold above immediate hurdle of 11,333 zones and later corrected sharply towards 10,866 levels.The index fell down around 480 points from its high of 11,346 to 10,866 and formed a strong Bearish candle on daily scale.However, it recovered around 300 points from its panic lows, but overall bears are keeping their tight grip on the market.
It also broke its support of 11,171 and until it doesnt cross and hold above 11,333 zones, overall weakness could remain intact for a decline towards 11,000 and lower zones.On option front, maximum Put OI was at 11,000 followed by 11,100 strike, while maximum Call OI was at 11,500 and 11,400 strikes.
We have seen fresh Call writing at 11,200 followed by 11,100 strike while Put unwinding was seen at all immediate strikes.India VIX moved up sharply by 10.96 per cent to 15.53 and during the day it made a high of 16.92, which is the highest level since February 20, 2018.Bank Nifty fell down sharply to test its swing low of 25,052 mark.
It has been making lower top lower bottom formation on the daily scale and resistances are gradually shifting lower.
It corrected more than 1,000 points during the session and now till it remains below 26,250 zone, overall weakness could continue with the decline towards 25,000 zones, while major hurdle is seen at 26,165 then 26,500 zones.Nifty future closed negative with a loss of 0.84 per cent at 11,178.
Built-up of Long positions were seen in GAIL, whereas shorts were seen in YES Bank, STAR, Chennai petro, IndusInd Bank, HCC, PEL and Union Bank.(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)