The index formed a bullish candle on the daily chart, but a bearish candle similar to a Shooting Star was seen on the weekly chart. It negated its higher highs and higher lows formation of the last five sessions. It has to now continue to hold above the 16,450-16,500 levels to extend the momentum towards 16,600 and 16,700 levels, while on the downside, support is seen at 16,350 and 16,200 levels.
India VIX moved up by 8.64 per cent from 12.90 to 14.01 levels. Sudden spurt in volatility has caused profit booking declines in the market. VIX is at its highest daily close of the last 39 trading sessions, which indicates some volatile cues could be seen in the market.
On the Options front, maximum Put open interest stood at 15,500, followed by the 16,000 strike, while maximum Call OI stood at 16,500, followed by 17,000 strike. Call writing stood at 16,500 and then 17,100 strike, while Put writing stood at 16,400 and then 16,300 strike. The options data suggested a broader trading range between 16,200 and 16,700 levels, while an immediate trading range was seen between 16,300 and 16,600 levels.
Bank Nifty opened with a gap down and despite the pullback in the broader market, it failed to move above the 35,300 level. Banking stocks continued to be muted and the rate sensitive index performed in a lacklustre way. It closed the session with losses of 520 points and formed a bearish candle on the daily and weekly charts. Now it has to hold 35,000 levels to witness a bounce towards 35,300 and 35,500 levels, while on the downside, support exists at 34,750 and then 34,500 levels.
Nifty futures closed negative with a loss of 0.9 per cent at 16420 levels. On the stocks front, bullish setup was seen in Hindustan Unilever, Mindtree, Britannia, Asian Paints, Nestle India, Godrej Consumer Products,
, Dabur, Bajaj Finance, and Petronet, while weakness was seen in NMDC, Vedanta, Tata Steel, Jindal Steel, Indiabulls Housing Finance, JSW Steel, , Bank of Baroda, Hindalco, DLF, Aurobindo Pharma, Mothersumi, Ashok Leyland, PVR, Lupin, UPL, Cholamandalam Finance, Tata Motors, Federal Bank, , ZEEL, M&M Finance, L&T Housing Finance, SBI and Hero Moto.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
