F&O: Nifty50's trading range at 11,100-11,500; high VIX a worry
Nifty needs to hold above the 11,333-11,350 zone to witness a bounce towards the 11,450 and 11,500 levels, while on the downside support is seen at 11,200 and then 11,111 level.
By ET CONTRIBUTORS |
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By Chandan Taparia
Nifty opened negative in line with weak global cues and drifted towards the 11,185 mark in the first half of the session. However, it witnessed a smart recovery of nearly 100 points from lower levels to close below 11,300 mark with a loss of 40 points.
The index formed a Small Bullish candle on the daily scale, as it closed above the opening mark. Now, it needs to hold above the 11,333-11,350 zone to witness a bounce towards the 11,450 and 11,500 levels, while on the downside support is seen at 11,200 and then 11,111 level.
India VIX fell 0.74 per cent to 22.55 mark. A spike in VIX from lower levels indicates short-term volatile swings could return to the market along with a roller-coaster ride.
On the options front, maximum Put open interest stands at 11,000 followed by 10,500 levels, while maximum Call OI was at 11,500 followed by 12,000 levels. There was marginal Call writing at strike price 11,500 and then 11,300 while there was Put unwinding at all the immediate strike prices. Options data suggested an immediate trading range between 11,100 and 11,500 levels.
Bank Nifty opened with gap down as it drifted sharply towards the 22,000 mark and ended with a loss of nearly 500 points. It relatively underperformed the benchmark index and continued its weakness for the fifth consecutive session. The index has been making lower highs and lows on the daily scale and the overall trend is under pressure. Now, it needs to hold above 22,500 level to witness some stability. However, a ‘hold’ below the same level may drag the rate-sensitive index towards 22,000 and then 21,750 levels.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
Nifty opened negative in line with weak global cues and drifted towards the 11,185 mark in the first half of the session. However, it witnessed a smart recovery of nearly 100 points from lower levels to close below 11,300 mark with a loss of 40 points.
The index formed a Small Bullish candle on the daily scale, as it closed above the opening mark. Now, it needs to hold above the 11,333-11,350 zone to witness a bounce towards the 11,450 and 11,500 levels, while on the downside support is seen at 11,200 and then 11,111 level.
India VIX fell 0.74 per cent to 22.55 mark. A spike in VIX from lower levels indicates short-term volatile swings could return to the market along with a roller-coaster ride.
On the options front, maximum Put open interest stands at 11,000 followed by 10,500 levels, while maximum Call OI was at 11,500 followed by 12,000 levels. There was marginal Call writing at strike price 11,500 and then 11,300 while there was Put unwinding at all the immediate strike prices. Options data suggested an immediate trading range between 11,100 and 11,500 levels.
Bank Nifty opened with gap down as it drifted sharply towards the 22,000 mark and ended with a loss of nearly 500 points. It relatively underperformed the benchmark index and continued its weakness for the fifth consecutive session. The index has been making lower highs and lows on the daily scale and the overall trend is under pressure. Now, it needs to hold above 22,500 level to witness some stability. However, a ‘hold’ below the same level may drag the rate-sensitive index towards 22,000 and then 21,750 levels.
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Nifty futures closed flattish at 11,318 level. The trade setup looked positive Tata Steel, ZEEL, Cipla, RIL, Escorts, Dr Reddy’s and Grasim but weak in RBL Bank, SBI, Axis Bank, Bajaj Finance, IOC, GAIL and Shriram Transport.(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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