Nifty formed a Doji sort of candle on the daily scale with long shadows on either side and negated the formation of higher highs and lows of last five sessions. Now, it has to cross and hold above 15,750 level to witness a bounce towards 15,900 and 16,000 levels, while on the downside support exists at 15,700 and 15,600 levels.
India VIX moved up 8.38 per cent from 11.70 to 12.68 level. The spike in volatility was seen due to a profit-booking decline, but the overall lower VIX may again attract buying interest on declines.
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 level followed by 15,800. There was Call writing at strike prices 15,800 and then 15,700, and Put writing at 15,400 and then 15,500 levels. Options data suggested a broader trading range between 15,500 and 16,000 levels.
Bank Nifty opened with a gap down and after an initial recovery, it remained under pressure for most part of the session. Banking stocks have been underperforming and facing pressure, but the index has managed to close above 35,000 level with a loss of around 670 points. It formed a Doji sort of candle on the daily scale and negated the formation of higher highs and lows of last five sessions. Now, the index has to hold above 35,000 level to move up towards 35,500 and 35,800 levels, while on the downside support exists at 34,850 and 34,500 levels.
Nifty futures closed negative with a loss of 1.09 per cent at 15,762 level. Among specific stocks, the trade setup looked bullish in BEL, Apollo Hospital, NTPC, ACC, Havells,
, Divi’s Labs, Dabur, SRF, Lupin, , and UltraTech Cement but weak in L&T Finance, , HDFC Bank, M&M Financial, BHEL, Ashok Leylands, IndusInd Bank, RBL Bank, Canara Bank, Bank of Baroda, HDFC, Siemens, Bajaj Finance, Maruti, , Chola Finance and Eicher Motor.
(Chandan Taparia is a Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
