F&O: Buying on declines, selling on rise; Nifty needs a decisive breakout

Source: economictimes.indiatimes.com

Nifty50 failed to surpass the 11,080 level on Tuesday and remained volatile for most part of the session. It formed a bearish candle on the daily scale as selling pressure emerged at higher levels. At the same time, the decline was being bought into. The index has been consolidating between 10,900 and 11,180 levels from last six sessions. Now, it has to hold above 10,950 to witness a bounce towards 11,111 level. It requires a decisive breakout from the trading band to get a smooth ride, else a volatile swing could continue with downside support at 10,950 and then 10,900 levels.

On the options front, maximum Put open interest was at 11,000 followed by 10,800 levels, while maximum Call OI was at 11,000 followed by 11,500 levels. Minor Call writing was seen at 11,100 followed by 11,000 levels, while there was Put unwinding at all immediate strike prices and minor Put writing at 10,800. Call and Put OI concentration at 11,000 suggested a rangebound bias with volatile swing in a broad trading range between 10,850 and 11,150 levels.

ndia VIX fell 0.70 per cent to 16.63 level. 

Bank Nifty is facing a hurdle near the upper band of its trading range and consolidating between 27,500 and 28,500 levels for past 10 sessions. It formed a bearish candle on the daily scale as there was supply pressure at higher levels while immediate support near 27,700 level. Now it needs to hold and sustain above 28,000 to witness a bounce towards 28,350 and then 28,500 levels, while on the downside supports are seen at 27,750 and then 27,500 levels.

Nifty futures closed negative at 11,037 level with a losses of 0.19 per cent . Long buildup was seen in MGL, MFSL, HavellsNSE -2.45 % and Maruti while shorts were seen in NMDCNSE -3.83 %, L&T Finance, STARNSE -0.92 % and Just DialNSE 1.30 %.