India VIX moved up 1.71% from 14.75 to 15 level. The fear gauge is near its lowest level in last 17 months since February 2020 and a falling VIX will continue to make the market favourable for a buy-on-decline strategy.
On the options front, maximum Put Open Interest stood at 15,000 level followed by 15,500, while maximum Call OI was seen at 16,000 followed by 16,100 levels. There was Call unwinding at all the immediate strike prices while Put writing was seen at strike prices 15,700 and then 15,500. Options data suggested an immediate trading range between 15,500 and 15,900 levels.
Bank Nifty opened positive and after an early consolidation, it headed towards 35,165 level. Banking stocks witnessed strength after a decline in the last two sessions and settled the day with a gainnof around 330 points. The index formed a bullish candle and an Inside Bar on daily scale even as it negated the formation of lower highs of the last three sessions. Now, it has to hold above 35,000 level to witness a bounce towards 35,500 and 35,750 levels while on the downside support exists at 34,750 and 34,500 levels.
Nifty futures closed positive with a gain of 0.60% at 15,755 level. Among specific stocks, the trade setup looked bullish in Bajaj Finance,
, Bata India, Godrej Consumers, LIC Housing, Bajaj Finserv, MFSL, PEL, , , Cadila Healthcare, Apollo Tyre, Divi’s Labs, SBI, McDowell, ICICIvPru, Cipla and but weak in Concor, Bajaj Auto, Exide India, , Hero MotoCoro and L&T.
