F&O: Spike in Vix, unwinding of Puts signal pause in momentum
On the options front, maximum Put open interest was at 11,000 followed by 11,500.
By ET CONTRIBUTORS |
Getty Images
By Chandan Taparia
The Nifty50 opened positive but failed to hold its gains and declined sharply towards the 11,550 level on Monday. It formed a bearish candle on the daily scale, but witnessed a bounce near its crucial support at 11,550. Now as long as it ho lds above 11,550, it can witness a bounce towards 11,666 and then 11,700 levels, while a hold below the same level may drag it towards 11,500 and then 11,450 levels.
On the options front, maximum Put open interest was at 11,000 followed by 11,500, while maximum Call OI was at 12,000 followed by 11,800. Call writing was seen at 12,000 followed by 11,700 levels while there was Put unwinding at all immediate strike prices. The option band signified an immediate trading range in between 11,500 and 11,800 levels.
India VIX moved up sharply by 9.32 per cent to 20.10. A sudden spike in VIX indicated a pause in the upside momentum.
Bank Nifty opened positive, but faced a hurdle near the 30,250 mark and drifted sharply towards the 29,700 level. It formed a Bearish Engulfing Candle on the daily scale and remained under pressure for most part of the day. Now as long as it holds below 30,000 level, Bank Nifty can slip towards 29,500 and then 29,250 levels while on the upside a hurdle is seen at 30,250 and then 30,500 levels.
Nifty futures closed in the negative at 11,674 with a loss of 0.74 per cent. Long buildup was seen in IGL, MGL and Idea while shorts were seen in DLF, NIIT Tech, Torrent Pharma and Concor.
The Nifty50 opened positive but failed to hold its gains and declined sharply towards the 11,550 level on Monday. It formed a bearish candle on the daily scale, but witnessed a bounce near its crucial support at 11,550. Now as long as it ho lds above 11,550, it can witness a bounce towards 11,666 and then 11,700 levels, while a hold below the same level may drag it towards 11,500 and then 11,450 levels.
On the options front, maximum Put open interest was at 11,000 followed by 11,500, while maximum Call OI was at 12,000 followed by 11,800. Call writing was seen at 12,000 followed by 11,700 levels while there was Put unwinding at all immediate strike prices. The option band signified an immediate trading range in between 11,500 and 11,800 levels.
India VIX moved up sharply by 9.32 per cent to 20.10. A sudden spike in VIX indicated a pause in the upside momentum.
Bank Nifty opened positive, but faced a hurdle near the 30,250 mark and drifted sharply towards the 29,700 level. It formed a Bearish Engulfing Candle on the daily scale and remained under pressure for most part of the day. Now as long as it holds below 30,000 level, Bank Nifty can slip towards 29,500 and then 29,250 levels while on the upside a hurdle is seen at 30,250 and then 30,500 levels.
Nifty futures closed in the negative at 11,674 with a loss of 0.74 per cent. Long buildup was seen in IGL, MGL and Idea while shorts were seen in DLF, NIIT Tech, Torrent Pharma and Concor.
ADVERTISEMENT
(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.)
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
