F&O watch: Nifty faces major hurdle at 9,191, may head towards 9,000 level below 9,165
By Chandan Taparia
The Nifty50 index opened in the positive but failed to surpass the immediate hurdle at 9,218 and corrected sharply towards the 9,100 level. It negated the effect of previous day’s Doji candle and formed a strong Bearish Candle on the daily chart by closing below its 13-day EMA.
The index continued its losing streak for the fourth consecutive session and now if it holds below the 9,165 level, it may drag the index towards the 9,020-9,000 zone. On the upside, hurdles are seen at 9,191 and 9,218 levels.
The Bank Nifty opened in the positive and registered a record life- time high of 21,947, but lost all the gains in the second half of the session and closed with marginal losses.
However, Bank Nifty has been outperforming the Nifty but sustained Call writing at strike price 22,000 has restricted its positive momentum. It has immediate support near the 21,500 level, and it needs to hold above the 21,750 mark to witness any move towards the 22,000 mark.
On the options front, maximum Put open interest was seen at strike price 9,000 followed by 9,100 while maximum Call open interest stood at strike prices 9,300 and 9,200. Significant Call writing was seen at strike prices 9,100, 9,150 and 9,200, which are shifting the resistance lower, while fresh Put open interest addition was seen at strike prices 8,900 and 9,050, which may provide support near the 9,020-9,000 zone.
India VIX moved up 4.08 per cent to 12.37. Now if the VIX manages to hold above 12.50, then the bears may get a short-term grip on the market. India VIX is near its nine sessions high amid global volatility.
The immediate option indicative band has moved to the 9,000-9,200 zone. A significant move beyond the option band can provide directional momentum to the Nifty50.
Major buildup of short positions was seen on select cement, metals and realty counter while fresh long positions got created on select PSU banks and NBFC counters.
(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 opened in the positive but failed to surpass the immediate hurdle at 9,218 and corrected sharply towards the 9,100 level. It negated the effect of previous day’s Doji candle and formed a strong Bearish Candle on the daily chart by closing below its 13-day EMA.
The index continued its losing streak for the fourth consecutive session and now if it holds below the 9,165 level, it may drag the index towards the 9,020-9,000 zone. On the upside, hurdles are seen at 9,191 and 9,218 levels.
The Bank Nifty opened in the positive and registered a record life- time high of 21,947, but lost all the gains in the second half of the session and closed with marginal losses.
However, Bank Nifty has been outperforming the Nifty but sustained Call writing at strike price 22,000 has restricted its positive momentum. It has immediate support near the 21,500 level, and it needs to hold above the 21,750 mark to witness any move towards the 22,000 mark.
On the options front, maximum Put open interest was seen at strike price 9,000 followed by 9,100 while maximum Call open interest stood at strike prices 9,300 and 9,200. Significant Call writing was seen at strike prices 9,100, 9,150 and 9,200, which are shifting the resistance lower, while fresh Put open interest addition was seen at strike prices 8,900 and 9,050, which may provide support near the 9,020-9,000 zone.
India VIX moved up 4.08 per cent to 12.37. Now if the VIX manages to hold above 12.50, then the bears may get a short-term grip on the market. India VIX is near its nine sessions high amid global volatility.
The immediate option indicative band has moved to the 9,000-9,200 zone. A significant move beyond the option band can provide directional momentum to the Nifty50.
Major buildup of short positions was seen on select cement, metals and realty counter while fresh long positions got created on select PSU banks and NBFC counters.
(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)
