India VIX moved up 3.60 per cent from 12.99 to 13.45 level. VIX moved up even after the market rise, as Call writers got trapped and most of the OTM and ATM strikes are witnessing surge in volatility. Overall comparative lower volatility indicates that bulls are holding the command and momentum could continue.
On the options front, maximum Put Open Interest stood at 16,000 level followed by 16,500, while maximum Call OI was seen at 16,500 followed by 17,000 levels. Minor Call writing was seen at strike prices 17,200 and then 16,800, while there was Put writing at 16,500 and then 16,400 levels. Options data suggested a broader trading range in between 16,250 and 16,750 levels while the immediate trading range was seen between 16,350 and 16,700 levels.
Bank Nifty opened slightly negative and moved downwards in a muted manner. Banking stocks lacked momentum and the index underperformed the broader market for the second session in a row. It closed flattish near its opening levels with a loss of 120 points. It formed a Bearish Doji sort of candle on the daily scale with a longer upper shadow. Now it has to continue to hold above 36,000 level to witness a bounce towards 36,250 and 36,500 levels while on the downside support was seen at 35,800 and then 3,5500 levels.
Nifty futures closed positive with the gains of 0.20 per cent at 16551 levels. Among specific stocks, the trade setup looked bullish in Apollo Hospital, Bajaj Finance, Tata Steel, IOC, M&M, VEDL, Bajaj Finserv, PEL, JSW Steel,
, HDFC, Hindustan Unilever, HCL Tech and Axis Bank buy weak in Cadila, Aurobindo Pharma, , , , Eicher Motor, , , LIC Housing Finance, Hero Moto Corp 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)
