Due to markets being in oversold territory, we could witness a quick pullback rally," Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities said.
For traders, the 200-day simple moving average (SMA - 16,992) and 16,850 would be a key support level. On the flip side 17,150 and 17,200 could be the immediate hurdle for the bulls," the market expert said.
The elevated volatility also caused a favorable trend for bears. The India VIX, which measures the expected volatility in the market, rose by 6.31 percent to 21.89 levels.
On the Option front, we have seen maximum Call open interest at 18,000 strike followed by 17,500 strike, with Call writing at 17,200 strike then 17,100 & 17,300 strike, while the maximum Put open interest was seen at 16,000 strike followed by 17,000 & 16,500 strikes, with Put writing at 16,500 strike then 16,000 strike.
Also read - Exuberance in broader market subsides as September turns somber
The above Option data indicated that the Nifty may remain in a range of 16,800 to 17,500 in the near term.
The Nifty Bank also corrected sharply, opening more than 500 points lower at 39,028 and corrected up to 38,492. The banking index defended the 38,500 level and closed with 930 points losses at 38,616 and formed a bearish candle on the daily charts, with lower high and lower low formation.
"The Nifty Bank index has breached its important support levels and pull-back rallies should be utilized to initiate fresh short positions," Kunal Shah, Senior Technical Analyst at LKP Securities said.
The higher-end resistance is visible at the 39,500-40,000 zone and the next support is seen at the 38,000 level, he added.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
For traders, the 200-day simple moving average (SMA - 16,992) and 16,850 would be a key support level. On the flip side 17,150 and 17,200 could be the immediate hurdle for the bulls," the market expert said.
The elevated volatility also caused a favorable trend for bears. The India VIX, which measures the expected volatility in the market, rose by 6.31 percent to 21.89 levels.
On the Option front, we have seen maximum Call open interest at 18,000 strike followed by 17,500 strike, with Call writing at 17,200 strike then 17,100 & 17,300 strike, while the maximum Put open interest was seen at 16,000 strike followed by 17,000 & 16,500 strikes, with Put writing at 16,500 strike then 16,000 strike.
Also read - Exuberance in broader market subsides as September turns somber
The above Option data indicated that the Nifty may remain in a range of 16,800 to 17,500 in the near term.
The Nifty Bank also corrected sharply, opening more than 500 points lower at 39,028 and corrected up to 38,492. The banking index defended the 38,500 level and closed with 930 points losses at 38,616 and formed a bearish candle on the daily charts, with lower high and lower low formation.
"The Nifty Bank index has breached its important support levels and pull-back rallies should be utilized to initiate fresh short positions," Kunal Shah, Senior Technical Analyst at LKP Securities said.
The higher-end resistance is visible at the 39,500-40,000 zone and the next support is seen at the 38,000 level, he added.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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