The Nifty50 index witnessed volatility as F&O contracts got rolled over on the expiry of the December series on Thursday. The index remained rangebound through the session, before the index settled bellow the technically significant 10,490 level.
The Nifty50 opened at 10,498 and touched a high and low of 10,534 and 10,460, respectively, before closing 12.85 points, or 0.12 per cent, down at 10,477. In the process, it formed a small black body on the candles.
For the coming sessions, the 10,490 level will remain technically important to watch out for. The index needs to move past this level to attempt a breakout again, said Milan Vaishnav, Technical Analyst, Gemstone Equity Research and Advisory.
A small black body emerged on the charts. Though this is insignificant, it underlines the indecisive and tentative mood of the market participants, Vaishnav said.
The domestic market underperformed other Asian markets on Thursday. "We expect Nifty to face resistance in the 10,490-10,535 zone for some time," Vaishnav said.
It would be prudent for traders to wait for signs of strength rather than buying the dip in anticipation of a fresh breakout, said Mazhar Mohammad, Chief Strategist-Technical Research & Trading Advisory, Chartviewindia.in.
On the option fronts, maximum Put open interest (OI) for the January series stood at 10,000 followed 10,300, while maximum Call OI was at 10,700 followed by 10,800 and 10,500.
Open interest remained scattered at the beginning of the new series and the option band signified a broader trading band between 10,300 and 10,700 levels for the coming sessions, said Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Financial Services.
India VIX, the volatility index on the National Stock Exchange, fell 1.56 per cent to 12.29. "VIX has to hold below 13-12.50 zones to support the overall bullish bias of the market," Taparia said.
[contf]
[contfnew]
ET Markets
[contfnewc]
[contfnewc]
The post Tech view: Small-bodied black candle shows Nifty is indecisive appeared first on News Wire Now.
