India VIX fell 5.44 per cent from 13.69 to 12.94 level. A decline in the volatility after the roller-coaster ride of the last session has again given a grip to the bulls and now VIX has to cool down below 12 level to be able to offer more comfort.
Since it is the beginning of the new series, Options data lay scattered at various far strikes. Maximum Put OI was at 15,000 followed by 15,500 while maximum Call OI was at 16,000 followed by 15,800. Options data suggested a broader trading range between 15,500 and 16,000 levels.
Bank Nifty opened positive and while it remained under pressure in the first half of the session, the latter half saw a recovery and it closed with a gain of 200 points. Banking stocks moved in a lacklustre way and comparatively it has been underperforming the broader market since the last two sessions.
It formed a small-bodied candle with a long lower shadow, which indicates that every decline is being bought into and follow-up action is still missing at higher levels. Now, it has to hold above 34,750 level to move up towards 35,000 and 35,250 levels, while on the downside, support exists at 34,500 and 34,250 levels.
Nifty futures closed positive a gain of 0.45 per cent at 15,779 level. Among specific stocks, the trade setup looked bullish in Hindalco, National Aluminium Company, Tata Steel, Vedanta, SAIL, NMDC, Bajaj Finserv,
, JSW Steel, Mindtree, DLF, Bajaj Finance, , Lalpath Labs, Havells and Infosys but weak in Colgate-Palmolive, , TVS Motors, Maruti, Bajaj Auto, , ITC, Cipla, Kotak Bank and HUL.
(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)
