The Nifty50 remained under pressure throughout the session on November 10, the weekly expiry day, and slipped below the 18,100 mark. Weak global cues amid caution ahead of monthly US inflation numbers, due later in the day weighed on sentiment.
All sectors traded lower with Auto being the biggest loser.
The index formed small bodied bearish candle which somewhat resembles a Doji kind of pattern on the daily charts, indicating indecisiveness among bulls and bears about future market trends.
The 50-share NSE benchmark has managed to defend the 17,900-18,000 area in Thursday’s fall, hence unless and until these levels get broken, further selling pressure is unlikely in the market. Till then there could be further consolidation in the market between the 17,900-18,300 area, experts said.
The Nifty50 opened lower by 100 points at 18,044 and corrected up to 17,969, an intraday low. The index showed a bit of recovery in the last hour of trade and closed with 129 points losses at 18,028.
“There have been no significant changes in the technical structure as the index managed to withhold the sacrosanct support of the 17,900-18,000 zone,” Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One said.
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As far as levels are concerned, Krishan said the immediate highs of 18,200-18,250 are expected to act as a sturdy hurdle, and a decisive breach will be required to continue the uptrend.
Traders should keep a close tab on the mentioned levels and stay abreast with domestic and global developments, Osho advised.
On the Option front, we have seen maximum Call open interest at 19,000 strike, followed by 18,500 strike with Call writing at 18,100 strike then 18,200 strike.
The maximum Put open interest was seen at 18,000 strike followed by 17,500 strike with Put writing at 18,000 strike and then 17,900 strike.
The above Option data indicated that the Nifty50 may continue to stay within 17,900-18,300 range in coming trading sessions.
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India VIX was down by 2.18 percent to 15.57 levels, overall giving good support to the market as we have been seeing the Nifty50 consolidating above 17,900 in the current month.
The broader markets were also caught in a bear trap with the Nifty Midcap 100 and Smallcap 100 indices falling more than 1 percent each on weak breadth. About 1,431 shares declined against 551 advancing shares on the NSE.
Bank Nifty opened gap down by 320 points at 41,463 and slipped up to the 41,300 level in the initial half of the session. The second half witnessed recovery and it closed near its day’s high at 41,601 with losses of 179 points.
The banking index formed a bullish candle on the daily frame with a long lower shadow indicating support-based buying. Now it has to hold above 41,500 level to make an up move towards 42,000 and 42,250 levels, with taking supports at 41,250 and 41,000,” Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.
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