The index formed a Small Bodied candle on the daily scale, but continued to form higher highs and lows for the fifth session in a row. Now, Nifty has to hold above 14,750 level to continue its bullish momentum towards the 15,250 mark, while support can be seen around 14,600 and then 14,500 levels.
India VIX moved up 1.28% from 23.12 to 23.41 level. Now, VIX needs to cool down and hold below 20 zone for continuation of the ongoing momentum with a higher market base.
On the options front, maximum Put Open Interest was seen at strike prices 14,000 and 13,500 while maximum Call OI was seen at 15,000 followed by 16,000 levels. There was Put writing at strike prices 14,800 and 14,500 while Call writing was visible at 15,000 and 16,000 and unwinding at strike price 14,700. Options data suggested a wider trading range between 14,500 and 15,200 levels.
Bank Nifty opened with a gap up and made a new lifetime high at 36,615 level, but could not sustain at higher levels. It cascaded and ended the session with a gain of around 300 points, but saw an intraday swing of 1,000 points from higher levels. The banking index has outperformed the broader market since the start of the series, and closed the week with around 17% gains. It continued to form higher tops and bottoms for the last six sessions and formed a bullish candle on the weekly chart and a Doji with long upper shadow on the daily scale. Now it has to hold the 35,000 level to witness further rise towards 36,000 and 36,500 levels, while on the downside support exists at 34,500 and then 34,250 levels.
Nifty futures closed positive at 14,946 level with 0.34% gain. On stocks front, the trade setup looked strong in Tata Steel, Divi’s Labs, Jindal Steel,
, , UltraTech Cement, Lupin, Cipla and HUL but weak in L&T Finance, Tata Motor, , , , UPL, Godrej Consumers, Gail, Colgate Palmolive, and Marico.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
