Now, the index has to hold above 14,500 level to extend its move towards 14,750 and then 15,000 levels, while on the downside, immediate support exists at 14,450 and 14,350 levels.
India VIX slipped 5.90% from 22.89 to 21.55 level. Volatility needs to cool down below the 20 level to commence a fresh leg of rally for the new lifetime high territory. However, volatility could be comparatively higher ahead of the Union Budget 2021.
On the options front, Maximum Put Open Interest stood at 14,000 level followed by 13,000, while maximum Call OI was at 15,000 followed by 14,800 levels. Call writing was seen at 15,000 and then 14,800 levels, while there was Put writing at 14,600 and 14,500 levels. Options data suggested a wider trading range between 14,200 and 15,000 levels, while the immediate trading range is between 14,500 and 14,800 levels.
Bank Nifty opened flat and moved in a consolidative fashion with buying on declines throughout the day. The positive undertone continues in all the banking stocks and the index closed with gains of around 100 points. It formed a bullish candle on the daily scale and continued the formation of high highs and lows from the last two sessions.
Now, it has to hold above 32,200 level to witness a bounce towards 32,750 and 33,000 levels, while on the downside support exists at 32,000 and 31,750 levels.
Nifty futures closed positive at 14,633 level with 0.44% gain. We witnessed positive setup in Apollo Tyre, Mindtree, Tata Motors, MRF, Bank of Baroda, Chola Finance, Bosch, PVR, Jindal Steel, Ashok Leyland, Federal Bank, Maruti, UPL, Asian Paint, RIL, M&M and TCS but weak in Powergrid, McDowell, GAIL, NTPC and IOC.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
