By Chandan Taparia
The Nifty50 index failed to continue its positive momentum of last session and corrected towards 11,700 level on Friday. It formed a Bearish Belt Hold candle and a Harami pattern on the daily chart, as it traded inside the trading range of last session amid sustained selling pressure for most part.
The index recently took multiple support near its 50-DEMA at 11,650, but absence of buying interest was also visible at 11,850 level. The index formed a bearish candle on the daily as well as weekly charts, which indicated that the bears restricted the upside momentum.
Now, it has to cross and hold above 11,761 to extend its move towards 11,850 and then 11,929 levels, while a hold below 11,650 level can negate the short-term consolidation for a decline towards 11,600 and then 11,550 levels.
On the options front, maximum Put open interest stood at 11,700 followed by 11,500 while maximum Call OI was at 12,000 followed by 11,800 levels. There was meaningful Call writing at 12,000 followed by 11,800 levels while minor Put writing was seen at 11,650 followed by 11,500 levels. Option data suggested a shift in the immediate trading range between 11,600 and 11,900 levels.
India VIX moved up 4.36 per cent to 14.61 level.
Bank Nifty formed a Doji candle with a long lower shadow on the weekly scale and a bearish candle on the daily scale, which indicated that every declines got bought into but the absence of followup buying interest was missing at higher levels. Now the index has to hold above 30,600 to extend its move towards 31,000 level while on the downside multiple supports are seen at 30,250.