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Below the Views on Technical Market by Anand James, Chief Market Strategist, Geojit Financial Services

Yet another series of unsuccessful attempts yesterday to clear 24389 ended with a close below 24167 limiting the chances of any meaningful recovery during the rest of the day. However, as maintained yesterday, we prefer to see this as volatility rather than an outright collapse. Equally importantly, even though it would not stand another attack, the 50day SMA, now at 23938, still holds, inline with this stance. This along with the hourly MACD yet to fall below signal line despite yesterday’s hammering, we are encouraged to ride upswings that could be triggered by overbought oscillators. Directional trades thus await break of 23938-24389, with our preference to go long, aiming 24540, should we float above 24195. Or to aim for 23670, should we see below 23938. 

Nifty weekly contract has highest open interest at 24150 for Calls and 24100 for Puts while monthly contracts have highest open interest at 25000 for Calls and 24000 for Puts. Highest new OI addition was seen at 24150 for Calls and 24100 for Puts in weekly and at 24400 for Calls and 24100 for Puts in monthly contracts. FIIs decreased their future index long position holdings by 10.64%, increased future index shorts by 7.26% and in index options by 50.92% decrease in Call longs, 35.60% decrease in Call short, 41.17% decrease in Put longs and 27.00% decrease in Put shorts. 

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