By Chandan Taparia
The Nifty50 index opened positive on Tuesday, but failed to fill its previous days gap down zone and drifted sharply towards the 11,480 mark. It formed a Bearish Belt Hold candle on the daily scale and finally broke its multiple support at 11,550 level after consolidating for 24 sessions.
The index has witnessed a breakdown of the consolidation below the 11,550 mark and a hold below the same could cause it decline towards the next support at 11,420 and then 11,333 levels, while hurdles are seen at 11,666.
On the options front, maximum Put open interest was at 11,000 followed by 11,500, while maximum Call OI was at 12,000 followed by 12,500. The was minor Call writing at 12,000 while Put writing was seen at 11,500. The option band signified a shift in the lower trading range between 11,300 and 11,800 levels.
India VIX moved up marginally by 0.18 per cent to 26.47 level. A higher VIX suggests volatile swings could continue in the market ahead of the election outcome.
Bank Nifty opened positive but failed to hold its gains and finally drifted towards the 29,250 mark, as it broke its crucial support at 29,500 level. The index formed a bearish candle on the daily scale as sustained selling pressure was seen for most part of the session. As long as it holds below 29,500, the index could drift towards 29,000 and then 28,888 levels, while hurdles are seen at 30,000.