The index recently saw a breakout from its consolidation band, but the absence of followup action has again taken it back to the broader trading zone. Now, it has to hold above 14,900 level to witness a bounce towards 15,050 and then 15,200 levels, while on the downside support exists at 14,800 and 14,700 levels.
India VIX moved up 1.72% from 19.31 to 19.65 levels. The fear gauge needs to hold below 20 level to extend the bullish market momentum.
On the options front, maximum Put Open Interest stood at 14,000 level followed by 14,500 while maximum Call OI was seen at 15,000 level followed by 15,500. Call writing was seen at strike prices 15,000 and 15,500 while there was Put writing at 14,900 and 15,000 levels. Options data suggested a broader trading range between 14,700 and 15,200 levels.
Bank Nifty opened flat, but failed to hold above 33,750 level and fell towards the 33,300 mark. The second half of the session saw more weakness, but the index closed above its 50 DMA and settled with a loss of around 350 points. It formed a bearish candle on the daily scale and formed lower highs and lows for the second straight session. Now it has to hold above 33,333 level to witness a bounce towards 33,750 and 34,000 levels, while support on the downside exists at 33,000 and 32,750 levels.
Nifty futures closed negative at 14,940 level with a loss of 0.79%. Among specific stocks, the trade setup looked bullish in Indiabulls Housing, Bosch, Chola Finance, RBL Bank, M&M,
, Ramco Cement, BPCL, MRF, BEL, ACC, Cummins India, , Colgate Palmolive and PFC but weak in SAIL, Jindal Steel, , GAIL, ONGC, Petronet, Britannia, IGL, and Kotak Bank.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
