Technically, the index formed a bullish candle on the daily scale and continued to form higher highs and lows for the second session in a row. Now, it has to hold above 14,400 level to witness a bounce towards 14,600 and 14,700 levels, while on the downside, support exists at 14,300 and 14,150 levels.
India VIX moved up 3.55% from 22.69 to 23.49 level. India VIX needs to hold below 20 level to again help a bullish stance in the market.
On the options front, maximum Put Open Interest (OI) stood at 14,000 level followed by 13,500, while maximum Call OI was seen at 15,000 level followed by 14,800. There was Call writing at strike prices 14,900 and 14,950 while Put writing was seen at 14,500 and 14,400 levels. Options data suggested a wider trading range between 14,200 and 14,800 levels.
Bank Nifty opened with a gap up, but could not hold above 32,500 levels and remained in a 250-point range for most part of the session. It formed a Doji sort of candle on the daily scale, but continued to form higher highs for the fourth session in a row. Now it has to trade above 32,250 level for a bounce towards 32,750 and 33,000 levels, while support on the downside can be seen at 32,000 and 31,750 levels.
Nifty futures closed positive with a 1.04% gain at 14,487 level. Among specific stocks, the trade setup looked bullish in SAIL, ICICI Pru Life,
, Vedanta, JSW Steel, Cummins India, , NMDC, Mindtree, Bajaj Auto, Adani Enterprise, Petronet LNG, Aarti Industries and Tata Consumers but weak in M&M Financial, HCL Tech, Dabur, L&T Finance 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)
