The Economic Times daily newspaper is available online now.

    F&O: Nifty50 breaks immediate support; VIX signalling weakness

    Synopsis

    As long as Nifty remains below 14,500 level, weakness can continue for a downside move towards 14,100 and the psychologically important 14,000 levels, while on the upside, hurdles are seen at 14,650 and 14,800 levels.

    VolatilityShutterstock.com
    India VIX moved up 16.25% from 19.78 to 22.99 levels. A spike in volatility from lower zones has again given the bulls a tough task to hold their key levels.
    Nifty50 on Monday opened with a gap down on weak global cues and witnessed a sharp selloff amid concerns over rising Covid cases in India. The index broke its immediate support level and the 50 DEMA and then drifted towards the 14,250 level. The market witnessed sustained selling pressure for most part of the session and bearishness was swept across the sector.

    The index closed negative with saw losses of more than 500 points and formed a Bearish Belt Hold sort of candle on the daily scale. Now as long as it remains below 14,500 level, weakness can continue for a downside move towards 14,100 and the psychologically important 14,000 levels, while on the upside, hurdles are seen at 14,650 and 14,800 levels.

    India VIX moved up 16.25% from 19.78 to 22.99 levels. A spike in volatility from lower zones has again given the bulls a tough task to hold their key levels.

    On the options front, maximum Put Open Interest stood at 14,000 level followed by 14,500 while maximum Call OI stood at 15,000 level followed by 15,500. There was Call writing at 14,500 and then 15,000 levels, while minor Put writing was seen at strike prices 14,300 and 14,400. Options data suggested a wider trading range between 14,000 and 14,800 levels.

    Bank Nifty opened gap down and drifted towards the 30,500 level by largely underperforming the broader market. It settled the session with a massive loss of more than 1,650 points. The index formed a bearish candle on the daily scale, indicating selling pressure at higher levels. Now as long as it remains below 31,500 level, weakness could continue for the downside move towards 30,500 and 30,000 levels, while on the upside hurdles are seen at 31,750 and 32,000 levels.
    « Back to recommendation stories
    I don't want to see these stories because
    SUBMIT

    Nifty futures closed negative at 14,364 level with the loss of 3.53%. Among specific stocks, the trade setup looked bullish in Dr Reddy’s, Cipla, Divi’s Labs and Asian Paints but weak in BHEL, Indiabulls Housing Finance, ZEEL, M&M Finance, RBL Bank, PNB, Canara Bank, L&T Finance, PEL, Apollo Tyre, IndusInd Bank, Chola Finance, LIC Housing, Federal Bank, Vedanta, Bajaj Finance, Havells, SBI, Bata and Cummins India.

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



    (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in