The index is now trading above its 50 DMA after the highest daily close in last 12 sessions with intraday gains of around 200 points. Technically, Nifty formed a bullish candle on the daily scale and has been forming higher highs and lows for last four sessions. Now, it has to hold above 14,800 level to witness a bounce towards 15,000 and 15,150 levels, while on the downside, support exists at 14,650 and 14,500 levels.
India VIX fell 2.17% from 23.08 to 22.58 level. India VIX needs to hold below 20 level to again attract a bullish stance while stable volatility is seen as a good opportunity for a ‘buy on decline’ strategy.
On the options front, maximum Put Open Interest was seen at strike price 14,000 followed by 14,500, while maximum Call OI stood at 15,000 followed by 15,200 levels. Call writing was seen at strike prices 15,100 and 15,050 while there was Put writing at 14,700 and 14,800 levels. Options data suggested a wider trading range between 14,600 and 15,000 levels.
Bank Nifty opened with a gap up and escalated throughout the session. All the banking stocks were seen driving the index as it touched an intraday high of 33,777 level. The index outperformed the broader market and concluded the session with a massive gain of around 1,000 points. The index formed a strong bullish candle on the daily scale and continued to form higher highs for the sixth session. Now it has to hold above 33,500 level for a bounce towards 34,000 and 34,250 levels, while support on the downside can be seen at 33,333 and 33,000 levels.
Nifty futures closed positive at 14,845 level with 1.37% gain. Among specific stocks, the trade setup looked bullish in TVS Motor,
, Bajaj Finserv, Kotak Bank, UBL, , SAIL, MFSL, Mindtree, Chola Finance, Motherson Sumi, Pidilite Industries, Bajaj Auto, , SBI, HDFC, PowerGrid and Asian Paint, but weak in Biocon, Voltas, , Lupin, Nestle India and HPCL.
(Chandan is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
