INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaNifty opened with a gap down for yet another session on Friday in line with weak global cues and corrected nearly 450
points to close near the 11,200 mark
It continued to make lower highs and lows for the fifth consecutive session and formed a Bearish Marubozu candle on the daily as well as
weekly charts as selling pressure sustained for most part of the week.
The index is down 7.3 per cent this week, as it witnessed one of the
worst falls since October 2008
The overall trend of the market is under pressure and resistance levels are gradually shifting lower
As long as it holds below the 11,333–11,350 zone, Nifty could see further weakness towards 11,111 and then 11,000 levels, while on the
upside hurdles are seen at 11,450 and then 11,550 levels.
Since it is the beginning of a new series, options data lay scattered at various
Maximum Call open interest stood at 12,000 and then 11,800 levels, while maximum Put OI was at 11,800 followed by 11,700 levels
There was meaningful Call writing at 11,500 and then 11,300 levels, while Put writing was seen at 11,300 and then 10,800 levels.
Options
data lay scattered at nearby strike prices, not giving any sense for immediate range
However volatility trading range could be seen between 10,800 and 11,600 levels.
India VIX moved up sharply by 30.83% to 23.23 level
India VIX has seen a breakout from its horizontal trend line on the daily scale, thus volatile swings could not be ruled out in the
market.
Bank Nifty opened with a gap down and witness sustained selling pressure throughout the session to close near the 29,100 mark
It corrected more than 1,000 points and failed to hold Budget Day’s low and closed at a four-month low
It continued to form lower highs and lows for past five sessions and formed a Bearish Marubozu Candle on the daily as well as weekly charts,
which indicated complete dominance by the bears at higher levels.
Resistance levels shifting lower gradually
As long as it holds below 29,600 mark, weakness could take Nifty towards 28,750 and 28,500 levels, while on the upside, hurdles are seen at
29,750 and then 30,000 levels.
Nifty futures closed with significant losses of 4.07 per cent at 11,158 level
Most shorts were seen in HCL Tech, Vedanta, Hindalco, PFC, Dabur and Titan
(Chandan Taparia is Technical - Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)