India VIX fell 2.05 per cent from 16.73 to 16.39 level. The overall decline in volatility in the last few sessions may offer comfort to the bulls and any decline could be bought into. Now, VIX needs to cool down below the 15-14 zone to continue the smooth ride of the market.
In options data, maximum Put Open Interest stood at the 17,000 level followed by the 17,500 level, while maximum Call OI stood at 18,000 followed by 18,500 levels. There was minor Call writing at the 17,800 and 18,000 levels, while Put writing was seen at 17,600 and 17,000 levels. Options data suggested a broader trading range between 17,200 and 18,200 levels, while the immediate trading range stood between 17,500 and 18,000 levels.
Bank Nifty opened negative, but managed to hold its immediate support at the 37,300 level and headed towards 37,786 level during the day. Select private banks drove the index and the index closed with a gain of around 160 points. It formed a bullish candle and respected the previous day’s low levels. Now it has to hold above the 37,500 level to witness a bounce towards 38,000 and 38,300 levels, while on the downside major support was seen at 37,300 and 37,000 levels.
Nifty futures closed positive with a gain of 0.75 per cent at 17,839 level. Among specific stocks, the trade setup looked bullish in ONGC, ABFRL, Tata Power, PEL, IndusInd Bank, Coal India, Aarti Inds, Hindustan Petroleum Corporation, Indian Hotels Company, IRCTC, Deepak Nitrite, IOC, SBI Life, Titan, Hcl Tech, Reliance, Mcdowell and Siemens but weak in Bharat Forge, Cipla, Shree Cement, Dabur and MGL.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
