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By Chandan TapariaThe Nifty50 index remained under pressure and slipped towards the 11,250 level, but witnessed a sharp upward move after RBI’s intervention to rescue a falling rupee.
It recovered more than 100 points from its low point and formed a Hammer Candle on the daily scale.
Now, it has to s urpass and hold above 11,380 level to extend its gains towards 11,420 and then 11,450 levels, while a hold below the same level could drag it towards the 11,333 mark.
On the options front, maximum Put open interest stood at 11,400 followed by 11,000 while maximum Call OI was at 11,800 and then 11,600 levels.
Put writing was seen at strike price 11,200 followed by 11,400 whereas minor Call writing was seen at 11,400 followed by 11,300 level.
India VIX fell sharply by 7.05 per cent to 14.25.
A sharp drop in VIX can provide some stability to the market.
Bank Nifty remained highly volatile throughout the session and formed intraday low of 26,555, but recovered sharply in the last hour of trading to close on a flat note.
It formed a Hammer Candle on the daily scale, but underperformed the broader index.
As long as it holds below 27,165 level, the index can slip towards the 26,650-26,500 zone, while on the upside, a hurdle was seen at 27,165 and then a medium-term hurdle near 27,440.
Nifty futures closed in the positive at 11,412 with a gain of 0.68 per cent.
Long buildup was seen in Godrej Consumers, PVR, Muthoot Finance and Cummins India while shorts were seen in Repco Home, BoB, Reliance Capital and PC Jewellers.
(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)
