India VIX fell 3.14 per cent from 16.15 to 15.65 level. A decline in volatility has again offered buying support to the broader market. Now VIX needs to cool down below the 15-14 zone to enable the market to continue the smooth ride.
In options data, maximum Put Open Interest was seen at 17,000 followed by 17,500 levels, while maximum Call OI stood at 18,000 followed by 18,500 levels. Minor call writing was seen at 18,200 and then 18,500 levels, while Put writing was seen at 17,900 and 17,800 levels. Options data suggested a broader trading range between 17,400 and 18,200 levels, while an immediate trading range is seen between 17,600 and 18,000 levels.
Bank Nifty opened positive and moved higher from lower zones, but it failed to surpass its immediate hurdle at 38,100 level. The index formed a bearish candle on the daily scale with long shadows on either side, indicating a tug of war between the bulls and bears. It has been forming higher lows from the last five sessions, but finding supply near the 38,100 level in last three sessions. It formed a bullish candle on weekly timeframe and has been respecting its lows for six weeks. Now it has to hold above 37,700 level to witness a bounce towards 38,100 and 38,300 levels, while on the downside major support was seen at 37,500 and 37,300 levels.
Nifty future closed positive with a gain of 0.58 per cent at 17,911 level. Among specific stocks, the trade setup looked bullish in IEX, Dixon, India Mart, MCX, BOB, Bandhan Bank, Poly Cab, Mindtree, Coforge, Reliance, Indian Hotels Company, LTI, SRF, LTTS, Infosys and HCL Tech but weak in ICICI Pru, MFSL, Ramco Cement, Havells, Cummins India, SBI Life, Dabur, Petronet 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)
