India VIX fell 3.89 per cent from 12.71 to 12.21 level. The overall lower volatility indicates that the bulls are in command and declines are getting bought into.
On the options front, maximum Put Open Interest was seen at 15,000 followed by 16,000 levels, while maximum Call OI was at 16,500 followed by 16,300 levels. Minor Call writing was seen at 16,600 and then 16,700 levels, while there was Put writing at 16,300 and then 16,350 levels. Options data suggested a broader trading range between 16,100 and 16,500 levels, and an immediate trading range between 16,200 and 16,500.
Bank Nifty opened flat to positive and moved in a range of less than 250 points for most part of the session. Momentum in selective bank stocks kept the banking index afloat, but it faced resistance at around 36,000 level due to the expiry of weekly options. The last couple of hours pulled the index higher to close with a gain of 130 points. Nifty formed a bullish candle and an Inside Bar on the daily scale. Now, it has to hold above 35,800 level to witness a bounce towards 36,250 and then 36,500 levels, while on the downside supports are seen at 35,700 and then 35,500 levels.
Nifty futures closed positive at 16,363 level with a gain of 0.49 per cent. Among specific stocks, the trade setup looked bullish in
, Power Grid, , Mindtree, Tata Motors, Tata Power, HCL Tech, Apollo Hospital, , ICICI Pru, Titan, , NTPC, Tata Chemical, McDowell, NMDC and Infosys but weak in Lupin, Eicher Motor, Cadila, Aurobindo Pharma, Ramco Cement, Manappuram Finance, Colgate-Palmolive 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)
