Now, Nifty has to respect the immediate support at the 18,350 level to extend its move towards 18,600 and 18,700 levels, whereas on the downside support is seen at 18,250 and 18,150 levels.
India VIX rose 1.18 per cent from 17.18 to 17.38 level. A spike in the index in the last two days suggested volatile moves ahead in the market. Now VIX needs to cool down below the 15-14 zone to continue the smooth market ride.
On the Options front, maximum Put Open Interest stood at the 18,500 level, followed by the 18,000 level, while maximum Call OI stood at 18,500 followed by 19,000 levels. There was minor Call writing at strike price 18,600 and then 18,400, while there was Put writing at 18,400 and then 18,300 levels. OI concentration at 18,500 level is giving early hint of a tug of war between the bulls and the bears. Options data suggested an immediate trading range in between 18,200 and 18,700 levels.
Bank Nifty opened with a gap up and inched towards the 40,000 level in the initial tick marking its new all-time high at the 40,011 level. However, it failed to hold above the 40,000 level and witnessed profit booking decline towards the 39,400 mark. The index formed a bearish candle on the daily scale and negated the formation of higher lows of the last ten sessions. Now it has to hold above the 39,300 zone to witness an up move towards the 40,000 level while on the downside major support is seen at 39,000 and 38,750 levels.
Nifty futures closed negative with the loss of 0.29 per cent at the 18,441 level. Among specific stocks, the trade setup looked strong in LTI, Mphasis, LTTS, Coforge, TechM, L&T, Siemens, Kotak Bank, Infosys and Reliance, but weak in DLF, Astral, Strides Pharma Science, Ambuja Cement, Bandhan Bank, Poly Cab, Escorts, Eicher Motor, GAIL, AU Bank and Pfizer.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
