F&O: Nifty again forms lower highs and lower lows; may remain weak
By Chandan Taparia
The Nifty50 remained weak and tested the next major support at 10,178 on Tuesday. It has been making lower highs and lower lows for last six sessions and needs to negate the same to get the short-term stability in the market.
Now if it sustains below 10,250, then weakness could continue till 10,120 and 10,080 levels, while on the upside, hurdles are seen at 10,250 and then 10,280 levels.
On the options front, maximum Put open interest stood at strike price 10,000 followed by 10,200, while maximum Call OI was at 10,500 followed by 10,400.
Significant Call writing was seen at strike prices 10,400, 10,300 and 10,200 while marginal Put writing was seen at strike price 10,200.
India VIX moved up 0.89 per cent to 14.16. A rise in VIX restricted Nifty on the upside.
The Bank Nifty has got stuck in the range between 25,100 and 25,700 in last 10 sessions. While it has been outperforming the Nifty50 index, followup is missing to take it to higher levels.
If it sustains above 25,400, only then can it rise till 25,600 and 25,750 levels, while on the downside, supports are seen at 25,100 level. Bank Nifty’s weekly contract has maximum Put open interest at strike price 25,000 while fresh Call writing was seen at most strike prices between 25,400 and 25,800.
Nifty futures closed in the negative with a loss of 0.37 per cent at 10,231. Long buildup was seen on the counters of Voltas, Amar Raja Battery, Tata Global, BHEL, Axis Bank, NIIT Tech, Titan, KPIT, Divis Lab and UBL while shorts were seen in Bharti Infratel, Marico, Apollo Hospital, RCom, Petronet LNG, Torrent Power, Cummins India, Canara Bank, Britannia, L&T, PowerGrid, Siemens and Vedanta.
(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)
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Via:: Economic Times – Stocks