The index has been forming higher highs and lows for the past five trading sessions, but formed a bearish candle on the daily scale. Now, it has to hold above 14,800 level to witness a bounce towards 15,000 and 15,150 levels, while support on the downside exists at 14,700 and 14,600 levels.
India VIX moved up 3.21% from 22.58 to 23.30 levels. India VIX needs to hold below 20 level to again attract a bullish stance, while constant volatility is providing a ‘buy on decline’ opportunity in the market.
Since, it is the beginning of new series, options data lay scattered at different strike prices. On the options front, maximum Put OI stood at 14,000 followed by 13,500 levels while maximum Call OI was seen at 15,000 and 15,500 levels. Options data suggested a wider trading range between 14,500 and 15,500 levels.
Bank Nifty opened with a gap up, but failed to hold above 34,250 level and moved in a range throughout the session. It concluded the day flat with a minor loss, but saw the highest daily close of 17 sessions. It formed a bearish candle on the daily scale and continued to form higher highs since the last seven sessions. 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 14,897 level with the 0.28% gain. Among specific stocks, the trade setup looked bullish in JSW Steel, SAIL,
, , Nalco, NMDC, Vedanta, , Sun TV, Ramco Cement, Apollo Hospital, Axis Bank, Lal Pathlabs, UPL and Chola Finance but weak in , Indiabulls House, Canara Bank, L&T Finance, Ashok Leyland, BHEL, PNB, M&M Finance and Escorts.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
