F&O: Options data suggests small drop, and then rangebound move
ET CONTRIBUTORS|
Updated: Oct 05, 2017, 05.32 PM IST
By Chandan Taparia
The Nifty50 index failed to surpass the 9,950 level and witnessed profit booking after a bounceback in last four sessions. It closed with a loss of around 25 points and slipped below its 50-day EMA. Now if it negates the formation of higher highs and higher lows of last four sessions by holding below 9,880, then it may again start the decline towards 9,820 and then 9,777 levels. On the upside, the index has a hurdle near 9,950 and then 9,980 levels.
On the options front, maximum Put open interest stood at 9,800 followed by 9,700, while maximum Call OI was intact at 10,000 followed by 9,900.
Fresh Put writing was seen at strike prices 9,900 and 9,800 while fresh Call writing was seen at all strike prices from 9,900 to 10,200. Options data suggest a small decline ahead followed by rangebound move with limited upside.
India VIX marginally fell by 0.76 per cent to 11.71. Volatility has been cooling down over the past five sessions and now a small rise in VIX can pause the bounceback rally.
Bank Nifty has been underperforming the Nifty for last four sessions. It has been moving in a narrow range of 230 points between 24,000 and 24,230 levels for last four sessions. It failed to move on either side even after the RBI policy and weekly expiry. Now, if it sustains below 24,000, then it could see a decline towards 23,850 and then 23,500 levels, while on the upside, hurdles are seen at 24,250 and then 24,350 levels.
Nifty futures closed with the marginal loss of 0.17 per cent at 9,915. Long buildup was seen in Jubilant Foodworks, NIIT Tech, ICIL, Tata Elxsi, Cadila, JustDial, NTPC, Arvind, KPIT, PNB, SunTV and Glenmark, while shorts were seen in PowerGrid, Hexaware, TechM, ICICI Bank, Divi’s Lab, BPCL and ITC.
(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 index failed to surpass the 9,950 level and witnessed profit booking after a bounceback in last four sessions. It closed with a loss of around 25 points and slipped below its 50-day EMA. Now if it negates the formation of higher highs and higher lows of last four sessions by holding below 9,880, then it may again start the decline towards 9,820 and then 9,777 levels. On the upside, the index has a hurdle near 9,950 and then 9,980 levels.
On the options front, maximum Put open interest stood at 9,800 followed by 9,700, while maximum Call OI was intact at 10,000 followed by 9,900.
Fresh Put writing was seen at strike prices 9,900 and 9,800 while fresh Call writing was seen at all strike prices from 9,900 to 10,200. Options data suggest a small decline ahead followed by rangebound move with limited upside.
India VIX marginally fell by 0.76 per cent to 11.71. Volatility has been cooling down over the past five sessions and now a small rise in VIX can pause the bounceback rally.
Bank Nifty has been underperforming the Nifty for last four sessions. It has been moving in a narrow range of 230 points between 24,000 and 24,230 levels for last four sessions. It failed to move on either side even after the RBI policy and weekly expiry. Now, if it sustains below 24,000, then it could see a decline towards 23,850 and then 23,500 levels, while on the upside, hurdles are seen at 24,250 and then 24,350 levels.
Nifty futures closed with the marginal loss of 0.17 per cent at 9,915. Long buildup was seen in Jubilant Foodworks, NIIT Tech, ICIL, Tata Elxsi, Cadila, JustDial, NTPC, Arvind, KPIT, PNB, SunTV and Glenmark, while shorts were seen in PowerGrid, Hexaware, TechM, ICICI Bank, Divi’s Lab, BPCL and ITC.
(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)
