It formed a small bearish candle on the daily scale, as it closed with a marginal loss and negated the higher highs and lows formations of last seven sessions. Now it has to continue to hold above 17,300 level to extend the move towards 17,500 and 17 777 levels, while on the downside support is seen at 17,200 and 17,050 levels.
India VIX fell 1.36 per cent from 15.10 to 14.89 level. A rise is volatility from lower level is a cause of volatile swings in the market. India VIX needs to hold below 13 level to continue the bullish momentum.
On the Options front, maximum Put Open Interest stood at 17,000 level followed by 16,500, while maximum Call OI was seen at 17,500 followed by 17,400. Call writing was seen at 17,400 and then 18,000 levels while there was Put writing at 17,400 and then 17,000 levels. Options data suggested a broader trading range between 16,800 and 17,800 levels while the immediate trading range was seen between 17, 100 and 17 500 levels.
Bank Nifty opened marginally lower and remained under pressure in the first half of the session as it fell towards 36,150 level. However, it recovered its intraday losses and moved towards 36,700 level. it failed to hold at higher levels and formed a small-bodied candle on the daily scale with a long lower shadow. Overall price setup suggests a tug of war but the major trend remained intact to bullish. Now it has to hold above 36,500 level to witness a bounce towards 36,900 and 37,000 levels, while on the downside support was seen at 36,250 and then 36,000 levels.
Nifty future, closed negative with a loss of 0.20 per cent at 17,370 level. Among specific stocks, the trade setup looked bullish in IRCTC, Indus Tower, Voltas, Lic Housing Finance, Can Fin Home, Bharti Airtel, HDFC, ITC, UltraTech Cement, Reliance, Nestle India and Ambuja Cement but weak in Canara Bank, PEL, Indiabulls Housing Finance, Tata Power, Sun Pharma, Axis Bank, ONGC and Motherson Sumi.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
