Nifty Tanks As Tensions Escalate
In a surprising move, India’s benchmark Nifty scaled up to 10942 in today’s session despite the ongoing tensions at the border. The index failed to sustain the upside momentum and fell sharply after it slipped below yesterday’s high of 10894 approx. The ongoing tensions at the border had pushed India Vix to 19.97 approx. Going forward, if Nifty slips below tomorrow’s range low it might scale down to 10736 approx. If situations at the border escalate further, Nifty might witness selloff.
Nifty was hit by volatility for the second consecutive day as border tensions escalated around 11:30 am today. The index had scaled up to a high of 10942 early in the day, however, sharp selling was witnessed after it slipped below 10894 approx. Massive buying was witnessed in Put options. The 10800 Put strike generated a return of 111% intraday. Going forward, Nifty is likely to find resistance around tomorrow’s range high. If the index trades below the range low, it might scale down to 10736 approx. On the other hand, if Nifty trades above tomorrow’s range high, it is likely to scale up to 10900 approx. Please note that the index might witness selloff if tensions escalate further.
Observations In The Hourly Timeframe
In the hourly session, Spot Nifty has closed around 10806 approx. The index is likely to find resistance around tomorrow’s hourly range high. If Nifty trades below, tomorrow’s hourly range low, it is likely to roll down to 10741 approx. On the other hand, if Nifty trades above tomorrow’s range high, it might scale up to 10850 approx.
Bank Nifty Options Data