The index closed negative with saw losses of more than 500 points and formed a Bearish Belt Hold sort of candle on the daily scale. Now as long as it remains below 14,500 level, weakness can continue for a downside move towards 14,100 and the psychologically important 14,000 levels, while on the upside, hurdles are seen at 14,650 and 14,800 levels.
India VIX moved up 16.25% from 19.78 to 22.99 levels. A spike in volatility from lower zones has again given the bulls a tough task to hold their key levels.
On the options front, maximum Put Open Interest stood at 14,000 level followed by 14,500 while maximum Call OI stood at 15,000 level followed by 15,500. There was Call writing at 14,500 and then 15,000 levels, while minor Put writing was seen at strike prices 14,300 and 14,400. Options data suggested a wider trading range between 14,000 and 14,800 levels.
Bank Nifty opened gap down and drifted towards the 30,500 level by largely underperforming the broader market. It settled the session with a massive loss of more than 1,650 points. The index formed a bearish candle on the daily scale, indicating selling pressure at higher levels. Now as long as it remains below 31,500 level, weakness could continue for the downside move towards 30,500 and 30,000 levels, while on the upside hurdles are seen at 31,750 and 32,000 levels.
Nifty futures closed negative at 14,364 level with the loss of 3.53%. Among specific stocks, the trade setup looked bullish in Dr Reddy’s, Cipla, Divi’s Labs and Asian Paints but weak in BHEL, Indiabulls Housing Finance, ZEEL, M&M Finance, RBL Bank, PNB, Canara Bank, L&T Finance, PEL, Apollo Tyre, IndusInd Bank, Chola Finance,
, Federal Bank, Vedanta, , Havells, SBI, Bata and .
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
