F&O Manual| Indices trade negative; Nifty breaches support level of 22,200

At 11:09 hrs IST, the Sensex was down 501.36 points or 0.68 percent at 72,965.03, and the Nifty was down 159.90 points or 0.72 percent at 22,142.60. About 1005 shares advanced, 2071 shares declined, and 105 shares unchanged

Indian benchmark indices fell amid volatility on May 9, ahead of the weekly expiry today. In the morning trade, the Nifty was down 160 points to 22,140. Options data suggests heavy call writing at 22,400 forming strong resistance for the day. Meaningful call writing is witnessed across 22,400-22,500 strikes.

Analysts said the near term support for the Nifty was at 22,200-22,250. Nifty has already fallen below these levels, and now the next support is placed at 22,000. Analysts see resistance for the index at 22,350, and then in 22,500-22,550 zone.

Bars in red indicate the change in open interest (OI) of call writers, while the green bars show the change in OI of put writers

Options data suggests heavy call writing at 22,400 levels forming strong resistance for the day. Meaningful call writing is witnessed across 22,400-22,500 strikes.

JM financial:Nifty is trading around a make or break support zone of 22,200-22,250. A move of 200-250 points can be expected on either side from here. The indicators are in the oversold zone on hourly charts and hence there is a strong possibility of recovery from the support levels in coming days.

Prabhudas Lilladher: The index has 22,000 as the major support. A decisive breach above 22,400 is necessary to improve the sentiment.

Bank Nifty levels

JM financial: : "The positive key take away for Bank nifty is that it is holding above 50 Day Exponential moving average, which is currently placed at around 47,700 Mark. On the downside, the support zone lies at 47,600-700 / 46,500-600 while the resistance is seen at 48,200-300 / 49,000-100," said Tejas Shah, Vice president technical research.

Sensex technical view

Prabhudas Lilladher: Sensex closed below 20 DMA (in the previous session). With a break below 73,000 the index can slide further till 72,700 -- the lower end of the rising trend line pattern, with bias turning weak. The support for the day is seen at 73,000/22,150 (Sensex/Nifty), while the resistance is seen at 74,000/22,450.

Among individual stocks, long build up is observed in Heromotoco, Eichermotors and Bharatforg. While short build up is seen in Muthootfin, L&T and Voltas.

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