The 21,500 call strike as per weekly option expiring October 1 has begun to see short -covering, indicating that traders could have a shy a...

The 50 per cent retracement from the low is around 9,970.

Analysts believe that the market could well make a new low if the 7,840 level is breached.

The call backspread has potential for unlimited upside and limited downside.

The front month Nifty futures contract (Sep 26 expiry) saw OI decline by around 3.5 lakh shares.

It involves selling a 26800 call and put on weekly Bank Nifty.

A rise on OI in the December contract, accompanied by the falling price, indicates the creation of fresh bearish bets.

Chandan Taparia, derivatives analyst, Motilal Oswal Securities, expects banks to lead a potential rally till expiry.

The Nifty has corrected from 11,760.2 on August 28 to 10,004.5 on October 26.

A conclusive breach of Bank Nifty below 26,555, could cause the index to drift lower towards 26,000, another crucial support.

The idea behind doing a bull call spread is to make at least two-fold return.

For now, technicals suggest that Nifty would make an up-move rather than go the other way.

From its high, the market has shed 2%, before breaching 9,500 to hit a low of 9,473.45.

The price of 9,200 call jumped 166% as OI dipped an overnight 24,175 contracts.

Hormuz Maloo, technical analyst, Geojit BNP Paribas Financial Services, in an interview with ET Now talks about the realty space.

Hormuz Maloo, technical analyst, Geojit BNP Paribas Financial Services, in an interview with ET Now talks about the metal pack.

Hormuz Maloo, Technical Analyst, Geojit BNP Paribas Financial Services