F&O watch: Nifty struggles to hit 9K, below 8,920, it may correct towards 8,860 & 8,820
By Chandan Taparia
The Nifty50 index formed a ‘Bearish Belt Hold’ candle on daily chart as it formed an opening high and witnessed a decline of around 45 points from the day’s high.
Overall, the index has been consolidating between 8,860 to 9,000 levels over the past 10 sessions and a decisive range breakout is required to start the next leg of the rally.
The index is struggling to surpass the psychologically important 9,000 mark. Now if it sustains below the 8,920 mark, then it may correct towards the next support levels at 8,860 and 8,820. If it holds above the 9,000 mark, it would start the fresh move towards the 9,119 mark.
On the options front, maximum Put open interest stood at strike price 8,800 followed by 8,700, while maximum Call open interest was at strike price 9,000 followed by 9,100. Sustained Call writing was seen at strike price 9,000, which has restricted Nifty’s upside.
India VIX moved up 1.72 per cent to 13.87. Now if VIX moves above 14.50, one has to be cautious on leveraged long position.
(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.)
The Nifty50 index formed a ‘Bearish Belt Hold’ candle on daily chart as it formed an opening high and witnessed a decline of around 45 points from the day’s high.
Overall, the index has been consolidating between 8,860 to 9,000 levels over the past 10 sessions and a decisive range breakout is required to start the next leg of the rally.
The index is struggling to surpass the psychologically important 9,000 mark. Now if it sustains below the 8,920 mark, then it may correct towards the next support levels at 8,860 and 8,820. If it holds above the 9,000 mark, it would start the fresh move towards the 9,119 mark.
On the options front, maximum Put open interest stood at strike price 8,800 followed by 8,700, while maximum Call open interest was at strike price 9,000 followed by 9,100. Sustained Call writing was seen at strike price 9,000, which has restricted Nifty’s upside.
India VIX moved up 1.72 per cent to 13.87. Now if VIX moves above 14.50, one has to be cautious on leveraged long position.
(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.)
