BNF : BNF last week closed with massive losses of 2.93%, and saw an overall volatility of 2247 pts. BNF saw mostly range bound moves in terms of movement during the first half of week, only to fall sharply later in the week with major downward moves coming on Thursday and huge fall on Friday. Set up in the index turned neutral to bearish undertone, remained buy on dips, underperformed Nifty by substantial 1.62% on WoW closing basis. Going ahead, the structure and texture of the index remained neutral with trending moves expected, the index closed below 4000 and was likely looking for bigger correction below 39300. For the index unless 40350 levels are not broken, any upside reversal remains capped. On a daily time frame 39900 remains a very crucial level for further move, remain buy above this level and sell below this. As per monthly option data highest OI buildup on PE at 39500-38500, and on CE at 40000-40500, whereas 40000 remain as max pain point with combined premium of approx 1025 pts in total of OI 35lacs both PE & CE. Technically, as long as BNF sustained above 39500 it could see pullback and once 39500 broken on the down side bigger move is expected towards 37700, on the flip side a move above 40500 could lead the rise toward 41200, the index formed a double top on weekly timeframe with bigger correction, it turned for short term bearish view in the index. The index as expected and commented last week underperformed to Nifty and we expect further contraction of premium b/w them. Last week as we mentioned the index remained mostly volatile with trending moves on downside. Going ahead, the index may continue to remain volatile with range bound to downward moves.
#NIFTYBANK *Weekly Update *Delayed Update