F&O watch: Nifty below 8,920, might correct towards the next supports at 8,860 and 8,820
By Chandan Taparia
The Nifty50 has been consolidating in between 8,860 and 9,000 levels for the past 11 trading sessions and is awaiting a decisive range breakout to commence the next leg of the rally.
During the day, the index fell towards 8,900, but recovered some of its intraday losses in the second half of the session. Now, if it sustains below the 8,920 level, then it might correct towards the next supports at 8,860 and 8,820, but if it holds above 9,000, it would start a fresh upward move towards 9,119 level.
On the options front, the maximum Put open interest stood at 8,800 followed by 8,700 and 8,900 levels while maximum Call open interest was intact at strike price 9,000. There has been significant Put writing at strike prices 8,900 and 8,700 while Call writing was intact at strike price 9,000, which is keeping the upside capped.
India VIX has been moving upward over the past three sessions and rising volatility has paused the positive momentum ahead of the outcome of UP elections.
(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 has been consolidating in between 8,860 and 9,000 levels for the past 11 trading sessions and is awaiting a decisive range breakout to commence the next leg of the rally.
During the day, the index fell towards 8,900, but recovered some of its intraday losses in the second half of the session. Now, if it sustains below the 8,920 level, then it might correct towards the next supports at 8,860 and 8,820, but if it holds above 9,000, it would start a fresh upward move towards 9,119 level.
On the options front, the maximum Put open interest stood at 8,800 followed by 8,700 and 8,900 levels while maximum Call open interest was intact at strike price 9,000. There has been significant Put writing at strike prices 8,900 and 8,700 while Call writing was intact at strike price 9,000, which is keeping the upside capped.
India VIX has been moving upward over the past three sessions and rising volatility has paused the positive momentum ahead of the outcome of UP elections.
(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)
