This was the second consecutive day when Nifty50 closed in the red, but on Thursday, the closing level was lower than the opening one, which led to the formation of a bearish candle.
Even though the index failed to hold on to 18,000, it still managed to close above the crucial support above 17,800, a positive sign for the bulls.
The index closed 126 points lower at 17,877, while the S&P BSE Sensex was down 412 points to close at 59,934 on Thursday.
Top gainers from Nifty50 include names like
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“The Nifty50 index failed to hold above the previous day’s high and slowly drifted down towards 17,860 zones. It formed a Bearish candle on a daily scale and closed near its day’s low,” Chandan
, Vice President and Analyst-Derivatives at Limited, said.
“It lost its momentum of the previous session and wiped out half of the recovery of the previous session. Nifty has to now hold above 17,850 zones, for an up move towards 18,088 and 18,200 zones whereas support is placed at 17,777 and 17,667 zones,” he said.
India VIX was up by 0.62 per cent from 18.27 to 18.39 levels. Volatility spiked to higher zones and now needs to come down for complete market stability.
On the options front, the maximum Call OI is at 18,000, which will act as a stiff resistance, followed by the 18,500 strikes, while the maximum Put OI is at 17,000, which will be an important support, followed by 17500 strikes.
“Options data suggests a shift in a trading range in between 17,500 to 18,300 zones, while an immediate trading range in between 17,600 to 18,100 zones,” added Taparia.
The Nifty Bank closed 0.4 per cent lower at 41,209. The banking index, which closed with gains of over a per cent in the previous trading sessions, lost strength on Thursday.
Traders booked profits at higher levels above 41,000. The index is up a little over 4 per cent in a week. The undertone is still bullish, and the next resistance is seen above 41500 levels.
“The Bank Nifty index witnessed some profit-booking at higher levels, indicating 41,800-42,000 will act as an immediate hurdle on the upside,” said Kunal Shah, Senior Technical Analyst at
“The lower-end support stands at 40,000 levels where one of the highest open interests is built up on the put side. The undertone remains bullish, and one should keep a buy-on-dip approach as long as it holds the support of 40,000 on the downside,” he added.
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