F&O: Spike in VIX halts Nifty momentum; most Put OI at 10K
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Updated: Oct 31, 2017, 04.52 PM IST
By Chandan Taparia
The Nifty50 index opened flat and formed a small bearish candle on the daily chart on Tuesday. It negated the formation of higher highs and higher lows of last five sessions and closed the day with a loss of around 25 points.
Now, it has to hold the support at 10,300 to attract buying interest for an upside move towards 10,400 and then 10,450, while on the downside, supports are seen at 10,250 and then 10,178 levels.
On the options front, maximum Put open interest stood at strike price 10,000 followed by 10,200 while maximum Call OI was at 10,400 followed by 10,500. Marginal Call and Put writing was seen at most of the out-of-the-money Puts and Calls.
India VIX moved up 2.73 per cent to 12.44. A rise in volatility for last two sessions has caused the positive momentum to pause.
The Bank Nifty closed with a marginal gain of 0.12 per cent. It traded in a small range of 130 points and managed to hold near the 25,000 mark. Now, it has to continue to hold above 25,000 to witness a bounce towards 25,198 and then 25,500, while on the downside, supports are seen at 24,750. The weekly contract has maximum Put open interest at 24,500 followed by 25,000 while maximum Call OI was at 25,500 than 25,200.
Nifty futures closed with a marginal loss of 0.18 per cent at 10,369. Long buildup was seen on the counters of NIIT Tech, BEL, Concor, Bank of India, Axis Bank, Bharti Airtel, RCom, KPIT, DLF, Tata Comm, Bharti Infratel, Dabur, Titan, Voltas and Amar Raja Battery, while shorts were seen in Canara Bank, LIC Housing Finance, Bank of Baroda, IDBI, STAR, UPL, PNB, NTPC, Tata Motors, Indiabulls Housing Finance, PFC, Hexaware and SBI.
(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 opened flat and formed a small bearish candle on the daily chart on Tuesday. It negated the formation of higher highs and higher lows of last five sessions and closed the day with a loss of around 25 points.
Now, it has to hold the support at 10,300 to attract buying interest for an upside move towards 10,400 and then 10,450, while on the downside, supports are seen at 10,250 and then 10,178 levels.
On the options front, maximum Put open interest stood at strike price 10,000 followed by 10,200 while maximum Call OI was at 10,400 followed by 10,500. Marginal Call and Put writing was seen at most of the out-of-the-money Puts and Calls.
India VIX moved up 2.73 per cent to 12.44. A rise in volatility for last two sessions has caused the positive momentum to pause.
The Bank Nifty closed with a marginal gain of 0.12 per cent. It traded in a small range of 130 points and managed to hold near the 25,000 mark. Now, it has to continue to hold above 25,000 to witness a bounce towards 25,198 and then 25,500, while on the downside, supports are seen at 24,750. The weekly contract has maximum Put open interest at 24,500 followed by 25,000 while maximum Call OI was at 25,500 than 25,200.
Nifty futures closed with a marginal loss of 0.18 per cent at 10,369. Long buildup was seen on the counters of NIIT Tech, BEL, Concor, Bank of India, Axis Bank, Bharti Airtel, RCom, KPIT, DLF, Tata Comm, Bharti Infratel, Dabur, Titan, Voltas and Amar Raja Battery, while shorts were seen in Canara Bank, LIC Housing Finance, Bank of Baroda, IDBI, STAR, UPL, PNB, NTPC, Tata Motors, Indiabulls Housing Finance, PFC, Hexaware and SBI.
(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)
