F&O: Nifty trading range shifts lower to 11,300-11,600 levels
The weakness of the last two sessions has caused a pause in the bullish sentiment.
Nifty50 opened negative and witnessed sustain selling pressure for most part of Wednesday’s trading session as it drifted towards the 11,400 mark. It formed a Bearish Belt Hold candle and negated the formation of higher lows of last three sessions. It partially filled the pending gap between 11,380 and 11,471 levels left three days back.
Major trend of the index is positive, but weakness of last two sessions has caused a pause in the bullish sentiment. Now, the index has to cross and hold above 11,500 to witness an upward move towards 11,600 and then 11,666 levels, while on the downside supports are seen at 11,380 and then 11,333 levels.
On the options front, maximum Put open interest was at 10,800 followed by 11,000 levels, while maximum Call OI was at 11,500 followed by 11,600 levels. Meaningful Call writing was seen at 11,500, followed by 11,600 levels, while there was minor Put writing at 11,400 followed by 11,450 levels.
Options data suggested a trading range between 11,300 and 11,600 levels. India VIX fell 3.35 per cent to 16.17 level.
Bank Nifty opened negative and drifted towards the 29,500 mark. It has negated the formation of higher lows of last three sessions and partially filled the gap between 29,418 and 29,776 levels. Now, it has to cross and hold above 29,750 to witness a bounce towards 30,100 and then 30,250 levels, while on the downside, major support is seen at 29,400 and then 29,250 levels.
Nifty futures closed negative at 11,461 with a loss of 1.31 per cent. There was long buildup in PowerGrid, TCS, ICICI Pre and NTPC while shorts were seen in NMDC, Ambuja Cements, Eicher Motors and Asian paints.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)