The index formed a bearish candle on the daily scale and negated the formation of higher highs and lows of last four sessions. Now, the index has to hold the 15,200 level to witness a move towards the 15,500 level, while on the downside, major support can be seen around 15,100 and 15,000 levels.
India VIX slipped 1.26% from 21.78 to 21.50 levels. Now, VIX needs to cool down and hold below 20 level to continue the ongoing momentum with a higher market base.
On the options front, maximum Put Open Interest was seen at 14,000 level followed by 15,000, while maximum Call OI was seen at 16,000 followed by 15,500 levels. There was Put writing at 15,200 and 15,000 levels, while Call writing was seen at 15,300 and then 15,500 levels. Options data suggested a wider trading range between 14,800 and 15,700 levels, while the immediate range was seen between 15,000 and 15,400 levels.
Bank Nifty opened flat and moved down towards 36,750 level. Banking stocks are now taking a pause in the positive momentum, and thus, the rate-sensitive index fails to sustain at higher levels. The index closed near lower levels with a loss of around 200 points. It formed a bearish candle on the daily scale with a long upper shadow, which indicated underperformance and pressure. It negated the formation of higher highs and lows in last three sessions. Now, it has to hold above 36,750 level to witness a bounce towards 37,500 and then 37,700 levels, while on the downside, support is seen at 36,500 and 36,250 levels.
Nifty futures closed in the negative at 15,190 level with a loss of 0.91%. On the stocks front, the trade setup looked bullish in
, Bank of Baroda, BEL, HPCL, Hero MotoCorp, Cummins India, Sun TV, PEL, SBI, , , MFSL, NTPC, and RIL but weak in Page Industries, Asian Paint, Maruti, IndusInd Bank, Torrent Pharma, HDFC Bank, Dr Reddy’s, Divi’s Lab, Glenmark and HUL.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
