India VIX moved up 1.82% from 14.60 to 14.86 level. India VIX had been gradually falling since last six consecutive weeks and came to the levels last seen in February 2020, when it started spiking. Lower volatility indicates an overall bullish market bias, but a small bounce in VIX can the market some volatility.
On the options front, maximum Put Open Interest was at 15,500 level followed by 15,000 while maximum Call OI was at 16,000 followed by 16,500. Minor Call writing was seen at 15,800 and then 15,900 levels, while minor Put writing was seen at 15,600 and then 15,400 levels. Options data suggested an immediate trading range between 15,600 and 16,000 levels.
Bank Nifty opened negative and moved in a negative to rangebound manner throughout the session. It formed a bearish candle and formed an Outside Bar on the daily scale as it got stuck in a range with restricted upside. Now, it has to cross and hold above 35,000 level to move towards 35,250 and 35,500 levels, while on the downside support exists at 34,750 and 34,500 levels.
Nifty futures closed negative with a loss of 0.64% at 15,777 level. Among specific stocks, the trade setup looked bullish in Tata Power, HPCL, Tata Consumers,
, NTPC, , Dabur, HUL, Infosys and McDowell it was weak in Adani Ports, Adani Enterprise, LIC Housing, BHEL, , Voltas, IndiGo, Hindalco, Vedanta, JSW Steel, , , TVC Motor and Havells.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
