INDIAVIX surged 1.4% due to tail end fall: Angel Broking
Derivatives view by Ms. Sneha Seth (Derivatives Analyst, Angel Broking):
"Post some hiccups in the initial half an hour of trade, we witnessed decent buying interest to rally beyond 11400 mark. In the midst, Niftyconsolidated above the 11400 mark but all of a sudden sharp profit booking in the final hour wiped-off all the gains to eventually conclude the session almost at the lowest point of the day.
Unlike yesterday's session, the banking index underperformed from the word go. Banknifty consolidated initially wherein 23000-23100 acted as a strong hurdle; however, in the sell-off seen in the final hour BankNifty corrected sharply to end the session with a cut of 1.16%. Apart from the Technology space, nearly all the sectors traded in red. We witnessed a good amount of long positions in HCLTECH, INFY and WIPRO.
As far as F&O activities in the indices are concerned, we saw fresh short formation in Nifty and long unwinding took place in case of BankNifty. In the weekly options front, massive writing was seen in 11300-11600 call options; whereas, 11000 and 11350 put strikes added some fresh trades.
Now considering the above data points, we believe 11450-11500 may now act as a strong hurdle for the Nifty. On the downside, 11250 is an immediate support, any downside below this may drag the index towards the 11100 mark. Hence, traders are advised to stay cautious and avoid any unnecessary bets."