F&O: Options show downward shift in Nifty trading range, Vix sees spike

The Nifty50 index opened with a downward gap and remained under pressure for the entire session on Friday. It formed a bearish candle on the daily and weekly scales, which suggests the bears are holding a tight grip on the market.

Now as long as it holds below 10,400. Nifty could slip towards its crucial support at 10,200 and then 10,138 levels, while on the upside, a tough hurdle is seen in the 10,450-10,500 zone

On the options front, maximum Put open interest was at 10,000 followed by 10,200, while maximum Call OI was at 11,000 followed by 10,600. There was meaningful Call writing at 10,400 followed by 10,600 while Put writing was seen at 10,200 followed by 10,100. The option band signified a trading band between 10,200 and 10,500 levels.

India VIX moved up 10.05 per cent to 19.78. A spurt in volatility after the dips of last few sessions suggests the upside could be restricted in the market.

Bank Nifty opened negative and traded in a narrow range of 200 points for most part of the session. It formed a bearish candle on the weekly scale, which implied supply at higher levels.

 

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