Nifty50 extended losses for the second consecutive day, dragged by technology, pharma, select banking & financial services and FMCG stocks. The index witnessed a formation of the bearish candle on the daily charts and closed below the psychological 18,000-mark on the weekly expiry day.
The index has made an attempt for the third straight session to surpass 18,100 but failed. Hence, 18,000-18,100 is expected to be a crucial levels to watch. Having crucial supports at 17,777 & 17,500.
The Nifty started off the day higher at 18,046 and touched to 18,096, but lost momentum in early trade itself. The index hit an intraday low of 17,861 but respected the previous day's low of 17,770. Hence unless and until that holds (17,770), there is a possibility that the index can get back into momentum, this is what price action indicates.
"Nifty has formed a bearish candle on daily charts and a double top formation on intraday charts indicating continuation of weakness in the near future. Trading set-up suggests that a fresh selling is possible only after the breaking of 17,800 support level.
If the nifty trades above 17,800, then it could retest the level of 18,100- 18,150. On the flip side, below 17,800, a quick intraday correction is not ruled out. Below which, it could slip to 17,777 - 17,650. Rising inflation and rate hike is a major concern for the market as of now.
India vix remained above the 18 mark
@ 18.39 levels. It needs to fall sharply to get stability in equity markets.
On the Options front, we have seen maximum Call open interest at 18,000 followed by 18,500 strike while the maximum Put open interest at 17,000 then 17,500 strike.
The banking index formed a small-bodied bearish candle on a daily chart and closed with losses of 196 points at 41,209. Now, it has to hold above 41,250 levels to make an up move towards 41,500 and its lifetime high of 41,840 levels, whereas supports are placed at 41,000 - 40750.
It was a expiry day and bears were have upper hands to eat premium up to 18900 onwards call options... It was a jittery hour while bull and bears were fighting to keep the market above or below 17900.
Looking forward to the chart, bearish trend has not been established but bullishness is also absent..
Tomorrow, market may be in specific range.. 17777-18150....
Siging off for the day 🎉