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F&O: Nifty50 in danger of falling towards the 11,420 level

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The Economic Times
12th July, 2019 17:50 IST

By Chandan Taparia

Nifty index opened positive and extended its gains towards 11640 marks but failed to hold its gains above 11600 zones and drifted towards 11550 levels. It formed a Bearish Candle on daily and weekly scale as supply pressure is intact at 11650 zones while buying interest is seen near to11480-11500 zones. Now it needs to continue to hold above 11550 zones to extend its bounce towards next hurdle of 11650 zones while a hold below the same could drift it towards major support of 11500 then 11420 zones.

On the option front, Maximum Put OI is at 11300 followed by 11500 strike while maximum Call OI is at 12000 followed by 11700 strike. We have seen Put writing at 11400 strike while Call writing is seen at 11700 followed by 11750 strike. Option data suggests a trading range in between 11400 and 11800 zones.

India VIX fell down by 4.49% at 11.91 levels. Lower VIX levels suggests consolidation likely to continue in near term.

Bank Nifty is forming higher highs from past three trading sessions but failed to hold its gains near 30800- 30850 zones. It formed a Bearish Candle on daily and weekly scale as supply pressure is seen at higher levels while buying support is seen at 30450- 30500 levels. Now it needs to hold above 30600 zones to witness a bounce towards 31000 zones while a hold below the same could drift it towards its major support of 30250 zones.

Nifty future closed negative with the losses of 0.31% at 11546 levels. Built up of long position were seen in MFSL, NiitTech, Just Dial and Canara Bank while Shorts were seen in Wipro, Larsen, Engineers India and Axis Bank.

(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)

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