By Chandan TapariaThe Nifty50 index opened positive but failed to continue its momentum in line with Mondays session and witnessed a dip towards the 10,180 level.It formed a small Spinning Candle and remained consolidative with limited upside for most part of the session.
Recently, it took support near the psychologically important 10,000 mark and it has showed a positive divergence with technical indicators, turning from its deep oversold territory.Now, it has to continue to hold above the 10,180-10,200 zone to extend its move towards 10,280 and then 10,333 levels, while on the downside support exists at 10,138 and then 10,080 levels.On the options front, maximum Put open interest was at 10,000 followed by 10,200 and 9,500 levels, while maximum Call OI was at 11,000 followed by strike price 10,500.
There was Put writing at 10,200 followed by 10,000 and Call writing at 10,300 followed by 10,500.India VIX moved up 3.27 per cent to 20.47.
Volatility is not cooling down and that is the only concern for the market.
VIX has to go down below 17-16 levels to confirm a short-term trend reversal and a decent bounceback after the sharp cut in last two months.Bank Nifty opened flat but failed to hold above 25,000 and drifted towards 24,700 mark.
It failed to continue the momentum of last session and remained negative to range-bound for most part of the session.
Now it has to hold above 24,650 to extend its gains towards 25,250 and then 25,500 levels while on the downside, major support is seen at 24,500 level.Nifty futures closed in the negative at 10,225 with a loss of 0.57 per cent.
Long buildup was seen in Union Bank, Divis lab, Ujjivan, Bank of India, Grasim and Escorts while shorts were seen in BPCL, LIC Housing Finance, Jubilant Foodworks, NIIT Tech, IndusInd Bank, Eicher Motor and Kotak Bank.