F&O: Nifty needs to stay above 10,094 for a technical pullback
ET CONTRIBUTORS|
Updated: Dec 06, 2017, 07.06 PM IST
By Chandan Taparia
Nifty index continued its formation of lower highs lower lows for sixth consecutive session and corrected towards 10,033. It failed to hold 10,094 zone and formed a bearish candle on the daily scale.
The index closed the day with a loss of 74 points and gave the lowest daily close in the last two months. Now till it holds below 10,094 zones, weakness could continue towards next support of 10,000-9,980 while on the upside hurdles are seen at 10,118 then 10,150 levels.
On the option front, maximum open interest is at 10,000 while maximum Call OI is at 10,500 followed by 10,400 strike. We have seen fresh Call and Put writing at most of the “out of money” strikes suggests that supports and resistances are gradually shifting lower. Maximum Put OI at 10,000 strike could provide as an immediate support, but if that is not respected then fresh decline could start in the market led by Call unwinding.
India VIX moved up by 0.52% at 15.08. Rising volatility is giving the grip to bears and showing short tern concern for long position
Nifty Bank continued its formation of lower highs – lower lows for sixth sessions and corrected below 25,000 zones. Now if it sustains below 25,000 then weakness could be seen towards 24,500 while on the upside hurdles are seen at 25,200 zones.
Nifty futures closed with loss of 0.72 per cent at 10,074. Built up of long position were seen in Page Industries, M&M Finance, Dish TV, Maruti Suzuki, HUL, Torrent Pharma, Godrej Consumer Products, Biocon, HCL Tech, Reliance, NCC and Arvind, while shorts were seen in Union Bank, OFSS, Siemens, RCom, CEAT, Infratel, Amara Raja Battery, IOC, Canara Bank, Titan, Voltas, M&M, Orient Bank, HDFC and ICICI Bank.
(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)
Nifty index continued its formation of lower highs lower lows for sixth consecutive session and corrected towards 10,033. It failed to hold 10,094 zone and formed a bearish candle on the daily scale.
The index closed the day with a loss of 74 points and gave the lowest daily close in the last two months. Now till it holds below 10,094 zones, weakness could continue towards next support of 10,000-9,980 while on the upside hurdles are seen at 10,118 then 10,150 levels.
On the option front, maximum open interest is at 10,000 while maximum Call OI is at 10,500 followed by 10,400 strike. We have seen fresh Call and Put writing at most of the “out of money” strikes suggests that supports and resistances are gradually shifting lower. Maximum Put OI at 10,000 strike could provide as an immediate support, but if that is not respected then fresh decline could start in the market led by Call unwinding.
India VIX moved up by 0.52% at 15.08. Rising volatility is giving the grip to bears and showing short tern concern for long position
Nifty Bank continued its formation of lower highs – lower lows for sixth sessions and corrected below 25,000 zones. Now if it sustains below 25,000 then weakness could be seen towards 24,500 while on the upside hurdles are seen at 25,200 zones.
Nifty futures closed with loss of 0.72 per cent at 10,074. Built up of long position were seen in Page Industries, M&M Finance, Dish TV, Maruti Suzuki, HUL, Torrent Pharma, Godrej Consumer Products, Biocon, HCL Tech, Reliance, NCC and Arvind, while shorts were seen in Union Bank, OFSS, Siemens, RCom, CEAT, Infratel, Amara Raja Battery, IOC, Canara Bank, Titan, Voltas, M&M, Orient Bank, HDFC and ICICI Bank.
(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)
