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    F&O: Nifty50 needs to negate lower highs & lows to stabilise

    Synopsis

    Till Nifty remains below the 11,461 level, it could fall towards the next support of 11,250.

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    By Chandan Taparia

    NSE Nifty opened negative on Monday and fell for a third consecutive session. The index formed a bearish candle on the daily scale and during the day it drifted towards the 11,300 level. The selling pressure was seen on every bounce.

    The 50-stock has been making lower highs and lower lows from the last three sessions and needs to negates the same to get some stability or pause in the selling pressure.

    Now, till Nifty remains below the 11,461 level, it could fall towards the next support of 11,250 while immediate hurdles are seen at 11,420 and then 11,461 levels.

    On the options front, maximum Put open interest was at 11,300 followed by 11,200 strike, while maximum Call open interest was at 11,600 followed by 11,500 strike. We have seen Put writing at 11,300 and 11,200 strike while meaningful Call writing was seen at 11,400 strike. Option data suggests a shift in lower trading range between 11,250 and 11,500 levels.

    Volatility index or India VIX moved up 3.91 per cent to 13.01.

    Nifty Bank remained under pressure throughout the day and plunged nearly 500 points to close near 29,250. It filled the rising gap made on May 20, and resistances are gradually shifting lower. The index formed a bearish candle on the daily scale as every bounce was sold into. Now till the Nifty Bank remains below 29,650, weakness could continue towards 29,000 and then 28,888, while on the upside, major hurdle is seen at 29,850 and then 30,000.

    Nifty futures with a loss of 0.61 per cent at 11,352. Builtup of long positions were seen in BEL, Oil India, Muthoot Finance and Voltas while shorts were seen in Mahindra & Mahindra Financial Services, Page Industries, Bajaj Finserv and HDFC.

    (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.)
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
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