F&O: VIX jumps 6.51%, options show Nifty range shifting lower

By Chandan Taparia

The Nifty50 index has broken its major rising trend line by connecting the swing lows of 10,585, 11,108 and 11,550 levels. It continued to see selling pressure in line with the weakness seen in last trading session and also broke its previous swing low of 11,461.

The index formed a Big Bearish Candle on the daily as well as weekly charts and started forming lower tops and bottoms on the lower time frame chart. As long as it remains below 11,500, a bounce could be sold into towards the next support at 11,333 and then 11,250 levels, while immediate hurdles are seen at 11,461 and then 11,500 levels.

On the options front, maximum Put open interest was at 11,300 followed by 11,400, while maximum Call OI was at 11,600 followed by 11,700 levels. There was Put writing at 11,400 and 11,350 levels while meaningful Call writing was seen at 11,500 followed by 11,600 levels.

The options data suggested a shift in trading range to 11,300-11,600 zone. India VIX moved up 6.51 per cent to 12.51 level. Volatility moved up after a decline in last two weeks.

Bank Nifty broke multiple supports at 30,250 and drifted towards 29,700 level. It has seen a breakdown from its consolidation band of last eight weeks and formed a Big Bearish Candle on the daily as well weekly charts. As long as Nifty remains below 30,000 level, weakness could continue towards 29,500 and then 29,250 levels, while on the upside a major hurdle is seen at 30,250.

Nifty futures closed in the negative at 11,433 with a loss of 1.48 per cent. Long buildup was seen in BEL, ONGC, Coal India and NTPC while shorts were seen in RBL Bank, Oil India, Amar Raja Battery and Biocon.

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