The index formed a Doji candle on the daily scale and a Hammer candle on the weekly scale, which indicates that declines are being bought, but follow up is missing at higher zones. Now, it has to continue to hold above the 14,500 zone for an up move towards 14,700 and 14,850 levels, while on the downside, support exists at 14,350 and 14,250 levels.
India VIX fell down by 2.33% from 20.89 to 20.40 levels. India VIX needs to hold below 20 zones to again attract a bullish stance in the market.
On the options front, maximum Put Open Interest stood at 14,000 level followed by 14,500 strike, while maximum Call OI stood at 15,000 level followed by 15,500 strike. There was Call writing at 15,200 and then 14900 level, while minor Put writing was seen at strike prices 14,500 and 14,000. Option data suggested a wider trading range in between 14250 to 14850 zones.
Bank Nifty opened on a positive note and headed towards 32,300 level, but failed to hold its gains and remained under pressure with a hurdle of 3,2250 level. Banking index failed to outperform the Nifty index and again started to show nervousness in the absence of any follow up buying interest. It formed a bearish candle on the daily scale, but a bullish hammer on the weekly scale, indicating a tug of war between bulls and the bears to find a short-term bottom. Now, it has to hold above 32,000 level for any up move towards 32,500 and 32,750 zones, while on the downside, support can be seen at 31,500 and 31,250 zones.
Among specific stocks, the trade setup looked bullish in Glenmark,
, Auropharma, Asian Paint, Cipla, Vedanta, , Jubilant Food, Apollo Hospital, SRF, M&M, ONGC, Tech Mahindra, Tata Consumers and Divis Labs, but weak in PVR, M&M Finance, RBL Bank, REC, Petronet, 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)
