“Till Nifty remains below 10,141 zones, weakness could continue to drag the index towards 9,850-9,800 zones,” says Chandan Taparia, Associate Vice President, Analyst-Derivatives at Motilal Oswal Securities.
Nifty index has been making lower top – lower bottom formation, it has broken December 2017 low of 10,033 and closed below psychological 10000 marks. It formed a Bearish Bar on the daily scale and a Bearish Belt Hold candle on weekly scale which indicates that bears are holding their tight grip on the market.
Now till it remains below 10,141 zones, weakness could continue to drag the index towards 9,850-9,800 zones.
Nifty index failed to hold its bounce back move with the hurdle of 10,222 zones and slipped sharply below 10,000 zones. It has been falling from last four consecutive weeks and bears are holding their tight grip on the market.
India VIX moved up by 2.1 percent in the last week and volatility started to hold above 15 levels. Rise in volatility with decline in Put Call Ratio suggests weakness in the market.
On the option front, Maximum Put open interest is at 10,000 followed by 9,900 strikes while maximum Call open interest is at 10,500 followed by 10,200 strike. We have seen massive Call writing at 10,000 followed by 10100 strike while Put writing is also seen at 9,900 strike.
Option band signifies a lower trading range between 9,900 to 10,200 zones as supports and resistances both are gradually shifting lower.
Bank Nifty has broken its multiple support of 24,000 marks and corrected towards 23,600 levels. It formed a Bearish Candle on the daily and Bearish Belt Hold on weekly chart.
Now if it fails to surpass 24,000-24,100 zones, weakness could extend towards 23,300 and 23,150 levels while on the upside hurdles are seen at 24,100 then 24,350.
Disclaimer: The author is Associate Vice President, Analyst-Derivatives at Motilal Oswal Securities. The views and investment tips expressed on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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