Nifty has got stuck in a wider range between 15,450 and 15,915 levels since last 27 sessions and a decisive directional move is missing due to the absence of follow-up activities. Now, it has to cross and hold above 15,750 level to witness a bounce towards 15,850 and 15,915 levels while on the downside support exists at 15,600 and 15,500 levels.
India VIX moved up 11.06 per cent from 12.21 to 13.56 level. A sudden spurt in VIX from its multiple-month lows indicates some caution for short-term market action.
On the options front, maximum Put open interest stood at 15,500 level followed by 15,000 while maximum Call OI was at 16,000 followed by 15,800 levels. Minor Call writing was seen at 15,800 and 15,900 levels while there was Put writing at 15,300 and 15,200 levels. Options data suggested an immediate trading range between 15,500 and 15,900 levels.
Bank Nifty opened negative, but failed to hold above the immediate hurdle at 35,800 level and witnessed sustained selling pressure towards 35,134 level. The last hour of the day saw a slight recovery and the indec formed a bearish candle on the daily scale with losses of around 500 points. Now it has to hold above 35,250 level to move up towards 35,500 and 35,800 levels while on the downside support exists at 35,000 and 34,750 levels.
Nifty futures closed negative with a loss of 0.98 per cent at 15,730 level. Among specific stocks, the trade setup looked bullish in IGL, Colpal, Ambuja Cement, Eicher Motor, IndiGo,
, Godrej Consumers and IndusInd Bank but weak in , SAIL, RBL Bank, JSW Steel, , Vedanta, Hindalco, ONGC, Canara Bank, , PNB, Cipla and .
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
