It saw the highest daily close of last 51 sessions and settled with a huge gain of around 270 points. Technically, the index formed a strong bullish candle on the daily and weekly scales and formed higher top and bottom from the third week.
Now, it has to hold above 15,050 level to witness a bounce towards 15,300 level and then the lifetime high of 15,431 while on downside support exists at 15,000 and 14,900 levels.
India VIX fell 2.90% from 19.65 to 19.08 level. India VIX needs to hold below 20 level to extend the bullish market momentum towards a new lifetime high.
On the options front, maximum Put Open Interest stood at 14,000 level followed by 14,500, while maximum Call OI was seen at 15,500 followed by 16,000 levels. Call writing was seen at strike prices 15,700 and 15,600 and Put writing at 15,000 and 15,100. Options data suggested a broader trading range between 14,800 and 15,400 levels.
Bank Nifty opened positive and buying interest in all the banking stocks pulled the index towards 34,700 level. It closed the last session of the week with a handsome gain of around 1,270 points and saw the highest daily close in 43 sessions. The last hour of the session saw a sharp bounce and surpassed the previous resistance in the 34,143-34,287 zone. The index formed a strong bullish candle on the daily scale and negated lower highs and lows of last two sessions. Now, it has to hold above 34,250 level to witness a bounce towards 35,000 and 35,250 level while on the downside support exists at 34,000 and 33,500 levels.
Nifty futures closed positive at 15,223 level with 1.94% gain. Among specific stocks, the trade setup looked bullish in Bank of Baroda, Shriram Transport, IndusInd Bank, SBI, IDFC First Bank, HDFC Bank, ICICI Bank, Axis Bank, PVR, HDFC, , , REC, M&M, Chola Finance, and but weak in Havells, Marico, , NMDC, Voltas and GAIL.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
