The index finally gave a range breakout after 45 sessions and closed with decent gains of around 250 points. It has been forming higher highs and lows since the past four sessions and supports are gradually shifting higher. Now, it has to hold above 16,000 level to witness a bounce towards 16,250 and then 16,400 levels, while on the downside support is seen at 16,000 and then 15,900 levels.
India VIX moved up 7.40 per cent from 12.80 to 13.74 level after a decline in the last three sessions. Volatility spiked as Call writers got trapped and huge Call unwinding pressure was in the seen as it gave a range breakout.
On the Options front, maximum Put Open Interest was seen at 15,800 followed by 15,500 strike while maximum Call OI was at 16,000 followed by 15,800 strike. Call writing was seen at 16,400 and then 16,500 strike while meaningful Put writing was seen at 16,000 and then 15,900 strikes. Options data suggested a broader trading range between 15,800 and 16,400 levels.
Bank Nifty opened flattish but managed to hold 34,600 level and gradually extended its move towards 35,250 level. It formed a Big Bullish candle on daily scale and gained nearly 500 points as buying interest was seen in most of the banking stocks. It has given range breakout on daily scale and managed to close above 35,000 zone. Now it has to hold above 35,000 zone to witness an up move towards 35,500 and then 35,750 level, while on the downside support are seen at 34,750 and then 34,500 level.
Nifty futures closed posit gains of 1.51 per cent at 16,149 level. Among specific stocks, the trade setup looked bullish in
, Ashok Leyland, Havells, HDFC, Titan, , SBIN, Godrej Consumer Products, Sun Pharma, Dabur, , Divi’s Labs, Lalpath Labs and TCS but weak in RBL Bank, PVR, , and .
(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)
