India VIX fell 0.78% from 14.71 to the 14.60 level. The fear gauge is gradually falling since the last six weeks and has come to the levels last seen in February 2020. Lower volatility indicates a bullish market bias and suggests every small decline could get bought into in this market.
On the options front, maximum Put open interest stood at 15,500 level followed by 15,000 while maximum Call OI was seen at 16,000 followed by 16,500 levels. Minor Call writing was seen at strike prices 16,300 and 16,200 while there was minor Put writing at 15,700 and then 15,800 levels. Options data suggested an immediate trading range between 15,600 and 16,000 levels.
Bank Nifty opened with a gap up and slightly outperformed Nifty during the session after a long time. It took support in the 34,900-35,000 zone and traded rangebound for most part of the session before closing with a gain of around 300 points. It formed a bullish candle on the daily scale and higher lows on the smaller time frame chart. Now it has to hold above 35,250 level to move towards 35,500 and 35,750 levels, while support on the downside exists at 35,000 and 34,750 levels.
Nifty futures closed positive at 15,871 level with 0.24% gain. Among specific stocks, the trade setup looked bullish in ZEEL, MGL,
, Ramco Cement, SRF, Marico, , Berger Paint, , Axis Bank, , Dabur, Britannia, HUL and Infosys but weak in , REC, Vedanta, BEL, Lupin and Siemens.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
