Nifty formed a Bearish Belt Hold candle and has been forming lower highs and lows since the last two sessions. Now, it has to cross and hold above the 14,750 level to see stability to move towards 14,900 and then 15,000 levels while on the downside support exists at 14,600 and 14,500 levels.
India VIX moved up 1.26% from 19.83 to 20.08 level. The fear gauge needs to hold below the 20 mark to again attract a bullish stance in the market.
On the options front, maximum Put Open Interest 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 14,800 and 15,200 while Put unwinding was seen at all the immediate strike prices with Put writing at strike price 14,700. Options data suggested a wider trading range between 14,400 and 15,000 levels.
Bank Nifty opened negative but failed to surpass the 32,750 level and drifted towards 32,350 mark. It failed to surpass a key hurdle at 33,333 level and now the bears have started pulling the index to lower levels. The index formed a bearish candle and is forming lower tops and bottoms on the hourly scale. The index has to cross and hold above 32,750 level to witness a bounce towards 33,333 level, while on the downside support exists at 32,250 and 32,000 levels.
Nifty futures closed negative at 14,706 level with 1.15% loss. On the stocks front, the trade setup looked bullish in Godrej Consumers,
, , Cadila, NMDC, SBI, Motherson Sumi, Lupin, Maruti and PowerGrid but weak in Voltas, Tata Steel, , IndusInd Bank, Hindalco, MGL, HUL, , Kotak Bank, Axis Bank, M&M Financial, RIL and Ramco Cement.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
