F&O: Nifty50 forms lower top & lower bottom; ends rebound hope
ET CONTRIBUTORS|
Updated: Nov 13, 2017, 05.45 PM IST
By Chandan Taparia
The Nifty50 index continued the formation of lower top and lower bottom and corrected towards the 10,200 level in Monday’s session. The index formed a bearish candle and lost hope of a short-term bounceback.
It also broke its previous swing high support at 10,250. If Nifty holds below this level, it may continue the weakness over the next few sessions.
Now if it sustains below 10,250, then weakness can be seen towards 10,178 and then 10,150, while on the upside, hurdles are seen at 10,300 level.
Nifty futures closed in the negative at 10,265 with the loss of 0.65 per cent. On the options front, maximum Put open interest shifted to strike price 10,200, followed by 10,000, while maximum Call OI stood at 10,500 followed by 10,400.
Significant Call writing was seen at strike prices 10,300, 10,400 and 10,500. India VIX moved up 3.06 per cent to 13.88. Long buildup was seen only in IT stocks, while shorts were seen on metals, FMCG, pharma and other counters.
The Bank Nifty corrected by around 0.50 per cent and now supports are seen at 25,198 and then 25,000 levels, while on the upside, hurdles are seen at 25,600 and 25,750 levels.
(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 continued the formation of lower top and lower bottom and corrected towards the 10,200 level in Monday’s session. The index formed a bearish candle and lost hope of a short-term bounceback.
It also broke its previous swing high support at 10,250. If Nifty holds below this level, it may continue the weakness over the next few sessions.
Now if it sustains below 10,250, then weakness can be seen towards 10,178 and then 10,150, while on the upside, hurdles are seen at 10,300 level.
Nifty futures closed in the negative at 10,265 with the loss of 0.65 per cent. On the options front, maximum Put open interest shifted to strike price 10,200, followed by 10,000, while maximum Call OI stood at 10,500 followed by 10,400.
Significant Call writing was seen at strike prices 10,300, 10,400 and 10,500. India VIX moved up 3.06 per cent to 13.88. Long buildup was seen only in IT stocks, while shorts were seen on metals, FMCG, pharma and other counters.
The Bank Nifty corrected by around 0.50 per cent and now supports are seen at 25,198 and then 25,000 levels, while on the upside, hurdles are seen at 25,600 and 25,750 levels.
(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)
