Technical View | Nifty forms small-bodied bearish candle, needs to hold 16,061 for bounce


The Nifty ended below 16,150 in yet another volatile session on May 24, as the index squandered the gains to end in the red amid selling across sectors.

The index ended 89.50 points, or 0.55 percent, lower at 16,125.20. It formed a small-bodied bearish candle with a long lower shadow, indicating that the tug of war between the bulls and the bears will continue.

The index has to hold 16,061 to witness a bounce towards 16,250 and 16,400. On the downside, support exists at 16,061 and 16,000 zones, experts said.

“A close below 15,775 shall open up much bigger downsides for the index. Contrary to this, strength shall be expected only at a close above 16,400 levels,” Mazhar Mohammad, Founder & Chief Market Strategist,, said.

It will be prudent on the behalf of market participants to remain neutral on the Nifty till a decisive move in either direction, he said.

The options data suggests a trading range between 15,800 and 16,400 zone.

On the Options front, maximum Call OI (Open Interest) is at 17,000 then 16,500 strike, while maximum Put OI is at 16,000 then 15,500 strike.

Significant Call writing is seen at 16,500 then 16,400 strike, while Put writing is seen at 16,000 then 15,300 strike.

“Volatility spiked to near 26 zones, which is giving discomfort to the bulls and needs to come down for market stability,” said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.

India VIX was up by 9.56 percent from 23.39 to 25.63 levels.

Banking index

The Bank Nifty opened flat to negative and moved in a zig-zag fashion throughout the day. It remained under pressure but was resilient in comparison to the broader market.

It formed a Doji candle on the daily scale and closed 40 points higher.

“Now it has to hold above 34,000 zones to build strength towards 34,500 and 34,750 zones, while on the downside, support exists at 33,750 and 33,666 zones,” Taparia said.

Among stocks, a positive setup was seen in the Coromandel International, Ashok Leyland, TVS Motor, LIS Housing, Kotak Mahindra Bank, Dr Reddy’s, Siemens, Tata Motors, HDFC and HDFC Bank. Weakness was seen in PVR, Divi’s Labs, PEL, Grasim, Tech Mahindra, Ramco Cements, L&T Infotech, M&M Financials, ONGC, Mahanagar Gas, Berger Paints, Lupin, Hindalco, HCL Tech, Colgate Palmolive and Exide Industries.

Disclaimer: The views and investment tips expressed by experts on are their own and not those of the website or its management. advises users to check with certified experts before taking any investment decisions.


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