The index formed a strong bearish candle on the daily scale as it engulfed the price recovery of last four sessions and negated the formation of higher lows of last four sessions. Now, it has to cross and hold above 15,600 level to witness a bounce towards 15,750 and fresh lifetime high of 15,800 levels, while on the downside support exists at 15,550 and 15,400 levels.
India VIX fell 3.07% from 15.22 to 14.75 level. The fear gauge is near its lowest level of last 17 months since February 2020 and a falling VIX could continue to make the market favourable for a buy-on-decline strategy.
On the options front, maximum Put Open Interest was seen at 15,000 level followed by 15,500 while maximum Call OI was seen at 16,000 followed by 16,200 levels. Minor Call writing was seen at 15,800 level and then 15,700, while there was Put writing at 15,500 and then 15,400 levels. Options data suggested an immediate trading range between 15,450 and 15,800 levels.
Bank Nifty opened positive but cascaded down to 34,641 level. Banking stocks gained some strength initially, but weakness pulled the index to close with a loss of around 285 points. It formed a bearish candle on the daily scale with a long upper shadow and continued to form lower highs since the last three sessions. Now it has to hold above 34,750 level to witness a bounce towards 35,250 and 35,500 levels while on the downside support exists at 34,500 and 34,000 levels.
Nifty futures closed flat to negative with a loss of 0.64% at 15,667 level. Among specific stocks, the trade setup looked bullish in
, REC, PFC, PowerGrid, NTPC, Titan, Asian Paint, Apollo Hospital and HCL Tech but weak in Petronet, Nalco, Chola Finance, Voltas, Gail, M&M Financial, , PNB, Sun TV, Havells and SBI.
