Bank Nifty corrects from 29,500, to remain under pressure

Intraday derivatives data show creation of fresh bearish bets on Bank Nifty with the index trending lower, for now, within a 28,150-29,850 range. Bank Nifty active futures traded half a percent lower at 29,119 at the time of writing.

Futures witnessed a 20% rise in open interest as the index declined, implying creation of fresh bearish bets. The pressure on the index resulted in futures trading at a slight discount to the spot rate of 29,172. The spot index fell from an intraday high of 29,492.3 on profit booking.

"Looks like a sell-on-rise market with news of new ownership norms being out," said Rajesh Palviya, derivatives head, Axis Securities, Palviya who expects the focus to shift from financials back to IT and pharma.

Bank Nifty has risen a whopping 43% from September lows through Monday's intraday level of 29,172. The rally led by heavyweights like HDFC Bank, Kotak, ICICI, Axis and SBI has pushed the Nifty to a 12,963 record high recently.

Fear gauge India Vix traded 6% higher, reflecting the rising volatility.