Moneycontrol
Last Updated : May 04, 2018 06:41 PM IST | Source: Moneycontrol.com

Markets@Moneycontrol: Chandan Taparia sees a pause in Nifty momentum in May series

India VIX moved up by 2.08 percent at 13.12. Volatility spiked up after the decline of last four weeks and requires a hold below 13.50 to get back the positivity in the market.

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The Nifty50 which closed in red for the third consecutive day in a row on Friday could face rough waters in the coming week as support levels for the markets are shifting lower which does not augur well for the bulls, Chandan Taparia, Derivatives, and Technical Analyst at Motilal Oswal Securities said in an exclusive chat with Moneycontrol’s Kshitij Anand and Sakshi Batra.

The Nifty50 failed to hold on to momentum and quickly pared gains to close just above its crucial support level of 10,600 levels. The index slipped 0.69 percent for the week ended May 4.

India VIX moved up by 2.08 percent at 13.12. Volatility spiked up after the decline of last four weeks and requires a hold below 13.50 to get back the positivity in the market.

On the options front, maximum Put OI is placed at 10,500 followed by 10,400 strikes while maximum Call OI is placed at 11,000 followed by 10,800 strikes. Fresh Put writing was seen at 10,400 and 10,500 strikes while Call writing was seen at 10,700 and 10,800 strikes.

“Option data suggests an immediate trading range between 10,550 to 10,750 zones. The Nifty made a Three Black Crows formation on the daily scale which implies Bears are taking a grip in the market at higher levels but the index is respecting to its support zones,” Chandan Taparia, Derivatives, and Technical Analyst at Motilal Oswal Securities.

“It has been making lower highs – lower lows from last two sessions and now till it holds below 10638 weakness could be seen towards 10,550 and 10,500 zones while if it sustains above 10680 then upside could be seen towards 10,780-10,800 zones,” he said.

Taparia further added that Nifty has been making higher highs – higher lows on the weekly scale but closed negative after the five positive week which indicates a pause in positive momentum and requires a consolidation to start the next up move.
First Published on May 4, 2018 06:32 pm
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