F&O: Below 10,300, Nifty50 can head to 10,178 in the short term
By Chandan Taparia
The Nifty50 index opened in the negative on Thursday and witnessed sustain selling pressure for most part of the session. It formed a ‘bearish belt hold’ candle and corrected around 150 points. It continued to see weakness for the third consecutive session and corrected towards the 10,200 level.
If it sustains below 10,300, then short-term weakness could be seen towards 10,178 and then its swing low of 10,094, while on the upside, immediate hurdles are seen at 10,250 level.
On the options front, maximum and significant open interest stood at strike price 10,000 with outstanding position of around 65 Lakh shares, while maximum Call OI was at strike price 10,500. The option band signified lower trading band with expectation of higher market volatility in the December series.
India VIX moved up 3.75 per cent to 13.55. Rising volatility is again giving the bears a grip on the market, raising short-term concerns for long positions.
Bank Nifty broke its support of 25,665 and corrected towards the 25,246 mark. It fell more than 2 per cent during the day. Short-term weakness can be seen till it doesn’t surpass the immediate hurdle at 25,665 and 25,750 levels. On the downside, the Nifty50 has support at 25,198 and then 25,000 levels.
Nifty futures closed with a loss of 1.30 per cent at 10,225. Long buildup was seen in Bharti Airtel and Torrent Power, while shorts were seen in Godrej Consumers, ZEEL, ICICI Bank, Hindustan Zinc and Tata Motors.
(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)
Let’s block ads! (Why?)
Via:: Economic Times – Stocks