F&O watch: Nifty50 forms lower highs, makes a Bearish Candle on charts
By Chandan Taparia
The Nifty50 index has started forming lower highs since last two sessions and formed a Bearish Candle on the daily chart on Friday. It has broken its immediate support at 9,218 and now if it holds below 9,191, the index may fall towards 9,133 and 9,090 levels.
The Nifty50 formed a Shooting Star candle on the weekly chart after making a new life time high of 9,273 and now if followup selling happens, then the index could drift lower. On the upside, it has immediate hurdle near the 9,280 level.
However, major trend of the market is still intact and it is positive as it holds above the 13 DEMA. It is respecting the support trend line by connecting the lows of 8,712, 8,903 and 9,024 levels, but traders would do well to stay cautious amid volatile cues from global markets.
On the options front, maximum Put open interest was seen at strike price 9 000 followed by strike price 9,100 strike while maximum Call open interest was at strike price 9,500 followed by 9,300. Fresh Call writing was seen at all strike prices between 9,200 and 9,500, which are restricting the upside momentum. Put unwinding is signalling caution on an immediate basis.
India VIX moved up by 3.57% to 11.69. If it moves above 12.50, then only the bulls need to worry in the market.
We have seen a decline of around 60 points in the index in the last one hour of the session and a failed attempt to cross the 9,280 mark is creating worries for the bulls in continuing the rally on an immediate basis.
The Bank Nifty formed a double top on the weekly chart as it failed to cross the 21,700 level and it corrected towards the 21,400 mark. Now if it holds below 21,450, then selling pressure may continue towards 21,250 and 21,000, while 21,700 level is likely to act as a strong barrier for this rate-sensitive index.
Stock-specific selling pressure was seen in most stocks with a negative advance-decline ratio, but oil marketing companies were holding the gains with decent long accumulation. Banking, metals and oharma stocks have seen addition of fresh short positions.
(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 has started forming lower highs since last two sessions and formed a Bearish Candle on the daily chart on Friday. It has broken its immediate support at 9,218 and now if it holds below 9,191, the index may fall towards 9,133 and 9,090 levels.
The Nifty50 formed a Shooting Star candle on the weekly chart after making a new life time high of 9,273 and now if followup selling happens, then the index could drift lower. On the upside, it has immediate hurdle near the 9,280 level.
However, major trend of the market is still intact and it is positive as it holds above the 13 DEMA. It is respecting the support trend line by connecting the lows of 8,712, 8,903 and 9,024 levels, but traders would do well to stay cautious amid volatile cues from global markets.
On the options front, maximum Put open interest was seen at strike price 9 000 followed by strike price 9,100 strike while maximum Call open interest was at strike price 9,500 followed by 9,300. Fresh Call writing was seen at all strike prices between 9,200 and 9,500, which are restricting the upside momentum. Put unwinding is signalling caution on an immediate basis.
India VIX moved up by 3.57% to 11.69. If it moves above 12.50, then only the bulls need to worry in the market.
We have seen a decline of around 60 points in the index in the last one hour of the session and a failed attempt to cross the 9,280 mark is creating worries for the bulls in continuing the rally on an immediate basis.
The Bank Nifty formed a double top on the weekly chart as it failed to cross the 21,700 level and it corrected towards the 21,400 mark. Now if it holds below 21,450, then selling pressure may continue towards 21,250 and 21,000, while 21,700 level is likely to act as a strong barrier for this rate-sensitive index.
Stock-specific selling pressure was seen in most stocks with a negative advance-decline ratio, but oil marketing companies were holding the gains with decent long accumulation. Banking, metals and oharma stocks have seen addition of fresh short positions.
(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)
