India VIX fell 5.55 per cent from 17.49 to 16.52 level. A spurt in India VIX in the last few sessions has caused a volatile swing and now it has to cool down below the 14 mark to continue the bullish stance in the market.
On the options front, maximum Put Open Interest stood at the 17,000 level followed by 17,500, while maximum Call OI was at 17,500 followed by 18,000 levels. Marginal Call unwinding was seen at 17,900 and then 17,800, while there was minor Put writing at 17,400 and then 17,500 levels. Options data suggested a broader trading range between 17,000 and 17,800 levrls while the immediate trading range stands between 17, 300 and 17,700 levels.
Bank Nifty opened positive and fell towards 36,500 level. However, it saw a recovery in the second half of the session and managed to close near the 37,250 mark with a gain of 90 points. It formed a small-bodied bullish candle on the daily scale with a long lower shadow indicating that the bulls were quite active on declines. Now it has to continue to hold above the 37,250 level to witness a bounce towards 37,800 and 38,000 levels while on the downside support was seen at 36,850 and 36,500 levels.
Nifty futures closed positive with a gain of 1.01 per cent at 17,562 level. Among specific stocks, the trade setup looked bullish in Mindtree, PVR, Godrej Properties, ONGC, Bajaj Finance, IndusInd Bank, PEL, Coforge, Indigo, LTI, Bajaj Finserv, ITC, Pidilite Inds, M&M Fin, MCX, Balkrishna Inds, LTTS, TechM, Indian Hotels Company and Jubilant FoodWorks but weak in Indiabulls Housing Finance, Maruti, SunTV, BPCL, Hero Motocorp, Bajaj Auto and MRF.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
