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

Source: economictimes.indiatimes.com

NSE Nifty opened positive and extended gains towards the 11,640 mark, but failed to hold on to the gains above 11,600 and drifted towards the 11,550 level. The index formed a bearish candle on daily and weekly scales as supply pressure was intact at 11,650 while buying interest was seen near the 11,480-11500 zone. 

Now, the index needs to hold above 11,550 to extend bounce towards next hurdle at 11,650, while a hold below the same could drift it towards major support of 11,500 and then 11,420.

On the options front, maximum Put open interest was at 11,300 followed by 11,500 strike, while maximum Call open interest was at 12,000 followed by 11,700 strike. 

We have seen Put writing at 11,400 strike while Call writing was seen at 11,700 followed by 11,750 strike. Option data suggests a trading range between 11,400 and 11,800 levels. 

India VIX fell 4.49 per cent to the 11.91 level. Lower VIX suggests consolidation likely to continue in the near term. 

Bank Nifty is forming higher highs from the past three sessions, but failed to hold its gains near the 30,800-30,850 zone. It formed a bearish candle on daily and weekly scales as supply pressure was seen at higher levels while buying support was seen at 30,450-30,500. Now, the index needs to hold above 30,600 to witness a bounce towards 31,000 while a hold below the same could drift it towards major support at 30,250. 

Nifty futures closed negative with a loss of 0.31 per cent at 11,546. Builtup of long positions were seen in Max Financial Services, NIIT Technologies, Just Dial and Canara BankNSE 1.43 % while shorts were seen in WiproNSE -3.29 %, L&T, Engineers India and Axis BankNSE -1.38 %.