India VIX moved up 2.30 per cent from 23.41 to 23.95 level. Now, VIX needs to cool down and hold below 21 level for the continuation of the ongoing momentum with a higher market base.
On the options front, maximum Put open interest stood at 14,000 level followed by 13,500 while maximum Call OI was seen at 15,500 followed by 16,000 levels. Put writing was seen at strike prices 14,500 and 15,000 while there was some Call writing at strike price 15,500. Options data suggested a wider trading range between 14,500 and 15,500 levels.
Bank Nifty opened with a gap up, but moved quite steadily during the session. It moved sideways and consolidated for most part of the day. The banking index did not surpass the previous day’s high, but ended the day with a gain of around 330 points. The index has been forming higher bottoms since the last seven sessions, but yielded an Inside Bar on the daily scale. Now it has to hold the 35,500 level to witness a bounce towards 36,500 level, while on the downside support exists at 35,000 and then 34,500 levels.
Nifty futures closed positive at 15,140 level with 1.41 per cent gain. On the stocks front, the trade setup looked bullish in M&M, Ramco Cement, Concor, Hindalco, Tata Motors, Exide India, Voltas, JSW Steel, Bajaj Finserv, Mindtree, Berger Paint, Tata Steel,
, Siemens, Grasim and L&T but weak in BHEL, PNB, Britannia, Godrej Consumers and Petronet.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
