India VIX is hovering near 26 and suggests a volatile swing in the market with some selling pressure
Nifty continued its weakness for the eighth consecutive trading session and drifted towards 11,250. It formed a bearish candle on daily and weekly scale, which indicates that bears have taken a grip on the market.
It has been forming lower highs, lower lows from past five trading sessions and holding below its 50-DEMA that indicates short-term weakness in the market. Now till it remains below 11,350, weakness could continue towards 11,188 then 11,050, while on the upside hurdle is seen at 11,333 then 11,420.
Nifty fell around 350 points in the last week and fresh shorts were added during the declines as it broke major support of 11,550.
India VIX is hovering near 26 and suggests a volatile swing in the market with some selling pressure. In the options market, maximum Put OI is at 11,000 followed by 11,500 while maximum Call OI is at 12,000 followed by 12,500. Call writing has been seen at 12,000 followed by 11,800 while Put writing has been seen at 11,300 followed by 11500. Option band signifies a shift in the lower trading range between 11,200 to 11,700.
Bank Nifty opened positive and attracted buying interest towards 29,200 but failed to hold at higher levels and settled the day near 29,000. It negated its lower highs, lower lows formation but failed to surpass its crucial resistance of 29,250 and till it remains below the same, weakness could continue towards 28500 while on the upside hurdle is seen at 29,500.Stock specific positive setup is seen in UPL, Titan, SBI, RBL Bank, Indiabulls Housing while negative setup in most of the metals, and auto stocks.
The Author is Derivatives & Technical Analyst at Motilal Oswal Financial Services.
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