F&O: Nifty50 in danger of falling towards 9,550 level
ET CONTRIBUTORS|
Updated: Sep 27, 2017, 05.13 PM IST
By Chandan Taparia
The Nifty50 continued to face selling pressure for the seventh consecutive session on Wednesday and corrected towards the 9,714 level. It formed a Bearish Belt Hold candle on the daily chart and fell around 200 points from its intraday high.
It failed to hold above the 9,880 level and witnessed sustained selling pressure till the end of session ahead of September derivatives settlement on Thursday.
It nullified the effect of Dragon Fly Doji on the daily chart and formed a Bearish Belt Hold on the weekly chart. Now, till it remains below 9,820 level, weakness could continue and take it towards 9,685 and 9,550 levels, while on the upside, hurdles are seen at 9,777 and 9,820 levels.
The Nifty has been holding below its 50 DEMA and its rising support trend line by connecting the swing lows of 9,075, 9,448, 9,685 and 9,880 levels. Mechanical indicators have also turned negative, which suggests weakness could continue for a few sessions.
On the options front, maximum Put open interest shifted to 9,700 followed by 9,600, while maximum Call OI shifted to 9,900 and 10,000 strikes. Significant Call writing was seen at all the strikes from 9,750 to 9,900, while fresh Put writing was seen at all the lower strikes below 9,700. Sustained Call writing and Put unwinding is not giving any sign of pause in selling pressure.
India VIX moved up sharply by 7.21 per cent to 13.86 and the jump in volatility is again a cause of concern for the short-term market movement.
Bank Nifty opened in the positive, but failed to hold its gains and corrected sharply towards the 23,750 level. Bank Nifty fell around 1,350 points in the last seven sessions and failed to hold the immediate support at the 24,000 level. Now till it remains below the 24,000 level, weakness could continue towards the 23,500 level, while hurdles are seen at the 24,250 level.
Nifty futures closed in the negative by 1.27 per cent at 9,741.
Shorts buildup was seen in Siemens, Pidilitind, Grasim, Kotak Bank, Dr Reddy's, Bharat Forge, JSW Steel, Hind Zinc, Yes Bank, M&M, Havells, Cadila, BEL and BHEL, while longs were seen in Bharti Infratel, TCS, TechM, Ambuja Cement, OFSS, NIIT Tech, Shriram Transport, etc.
(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)
The Nifty50 continued to face selling pressure for the seventh consecutive session on Wednesday and corrected towards the 9,714 level. It formed a Bearish Belt Hold candle on the daily chart and fell around 200 points from its intraday high.
It failed to hold above the 9,880 level and witnessed sustained selling pressure till the end of session ahead of September derivatives settlement on Thursday.
It nullified the effect of Dragon Fly Doji on the daily chart and formed a Bearish Belt Hold on the weekly chart. Now, till it remains below 9,820 level, weakness could continue and take it towards 9,685 and 9,550 levels, while on the upside, hurdles are seen at 9,777 and 9,820 levels.
The Nifty has been holding below its 50 DEMA and its rising support trend line by connecting the swing lows of 9,075, 9,448, 9,685 and 9,880 levels. Mechanical indicators have also turned negative, which suggests weakness could continue for a few sessions.
On the options front, maximum Put open interest shifted to 9,700 followed by 9,600, while maximum Call OI shifted to 9,900 and 10,000 strikes. Significant Call writing was seen at all the strikes from 9,750 to 9,900, while fresh Put writing was seen at all the lower strikes below 9,700. Sustained Call writing and Put unwinding is not giving any sign of pause in selling pressure.
India VIX moved up sharply by 7.21 per cent to 13.86 and the jump in volatility is again a cause of concern for the short-term market movement.
Bank Nifty opened in the positive, but failed to hold its gains and corrected sharply towards the 23,750 level. Bank Nifty fell around 1,350 points in the last seven sessions and failed to hold the immediate support at the 24,000 level. Now till it remains below the 24,000 level, weakness could continue towards the 23,500 level, while hurdles are seen at the 24,250 level.
Nifty futures closed in the negative by 1.27 per cent at 9,741.
Shorts buildup was seen in Siemens, Pidilitind, Grasim, Kotak Bank, Dr Reddy's, Bharat Forge, JSW Steel, Hind Zinc, Yes Bank, M&M, Havells, Cadila, BEL and BHEL, while longs were seen in Bharti Infratel, TCS, TechM, Ambuja Cement, OFSS, NIIT Tech, Shriram Transport, etc.
(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)
