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NSE Nifty opened on a flattish note and started correcting from initial trades. The index remained in the negative zone throughout the day, and formed a bearish candle on a daily chart.
The headline index has been making lower highs and lower lows from the last two trading sessions, and closed a tad below its immediate support at 50-DEMA. Going forward, immediate support is placed at 11,950 and then 11,900. On the flipside, a sustainable move above 12,100 may lead to an upmove towards 12,200 and then 12,250 levels.
On the options front, maximum Put open interest (OI) was at 12,000 followed by 11,500 strike, while maximum Call OI stood at 12,500 followed by 12,200 strike. Put writing was seen at 12,000 and then 11,700 strike, while Call writing stood at 12,000 followed by 12,200 strike. Options data indicates a wider trading range between 11,800 and 12,300 levels.
India VIX moved up by 3.35 per cent to the 14.21 level.
Bank Nifty witnessed selling pressure from the initial trades and corrected below the 31,000 level. The index negated its higher lows formation after four sessions, and formed a bearish candle on the daily chart. At the current juncture, it is sustaining above the Falling Channel breakout level and 50-DEMA. Support remains intact at 31,000–30,800 zone, and sustenance above the zone may lead to extension in ongoing move towards 31,500 and then 31,750.
Nifty futures fell 0.39 per cent to the 12,048 level. Long builtup was seen in UPL, MRF, GAIL, United Spirits and NTPC, while ZEEL, Tata Steel, Just Dial, SAIL, M&M witnessed formation of short positions.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
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