F&O: Nifty50 can slip towards 11,171 if it holds below 11,333

By Chandan Taparia

NSE benchmark Nifty continued its weakness for a third consecutive session and corrected towards 11,200 level, as it failed to surpass the immediate hurdle at 11,333.

The index formed a pattern similar to Three Black Crows and made a lower high lower low on the daily scale, which indicates that bears are having a tight grip on the market.


Now, till Nifty holds below 11,333 level, it can slip towards previous swing high of 11,171 and lower zones, while on the upside, hurdle is seen at 11,333 then 11,400.

On option front, maximum Put open interest is at 11,200 followed by 11,000 strike, while maximum Call OI is at 11,500 then 11,400 strikes. We have seen Call writing at 11,300 followed by 11,400 strike, while Put unwinding is seen at all immediate strikes.

India VIX fell down by 2.88 per cent to 14.

Bank Nifty continued its weakness and remained highly volatile on its weekly expiry session and corrected towards 26,250. It has been forming lower high lower low from the last three sessions and is trading 100 points away from its crucial 200-DEMA. The index is trading at its two months low levels and previous supports are gradually turning as resistance zones. Now, till it remains below 26,650 level, weakness could be seen towards 26,000.

Nifty futures closed negative with the losses of 0.34 per cent at 11,272. Built up of Long positions were seen in Gail, Muthoot Finance, JSW Steel and SRF whereas shorts were seen in Mindtree, Niittech, DishTV and Godrej CP.

(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)