India VIX fell 4.90% from 21.22 to 20.19 levels. A cooldown in VIX below 20 level is required for the bullish grip to continue and the market to see a smoother move.
On the options front, maximum Put open interest stood at 14,000 level followed by 14,500, while maximum Call OI was at 16,000 followed by 15,500. Call writing is seen at 15,000 and then 15,400 levels, while there was Put writing at 14,800 and 14,600 levels. Options data suggested a trading range between 14,700 and 15,200 levels.
Bank Nifty opened positive, but kept on moving southward from its opening level. However, the index respected the immediate support levels and did not breach Monday’s low. But a clear trend is yet to emerge. The index underperformed Nifty and settled the day with a loss of around 380 points. It formed a bearish candle on the daily scale with negligible shadows. Now it has to cross and hold above 35,000 level to witness a bounce towards 35,500 and 36,000 levels, while on the downside, support exists at 34,500 and then 34,000 levels.
Nifty futures closed flat to positive at 14,973 level with 0.03% gain. Among specific stocks, the trade setup looked bullish in
, Mindtree, Apollo Hospital, M&M Financial, Torrent Power, Mphasis, LTI, Coforge, HCL Tech, HUL, Chola Finance, PFC, TCS, , Britannia and Dabur but weak in IDFC First, PNB, Sun TV, IOC, ICICI Pru, ICICI Bank, SBI, Cipla and L&T.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
