India VIX was marginally down by 0.16% from 20.19 to 20.15 level. VIX needs to cool down below 20 level for the bullish grip to continue and the market to see a smoother move. A decline in VIX even after the 200-point fall in the market not giving any immediate clue.
On the options front, maximum Put Open Interest stood at 14,500 level followed by 14,000 while maximum Call OI was seen at 15,000 followed by 16,000 levels. There was Call writing at strike prices 15,000 and 14,800 and Put writing at 14,200 and 14,500 levels. Options data suggested a lower trading range between 14,500 and 15,000 levels.
Bank Nifty opened positive but cascaded down throughout the day and breached the 34,150 mark. A steep decline was seen in the rate-sensitive index, which concluded the day with a loss of around 600 points. It has been making lower highs from the last three sessions and formed a strong bearish candle on the daily scale, indicating a tight bear grip. Now as long as the index remains below 34,750 level, weakness could be seen towards 33,500 and 33,333 levels, while on the upside, a key hurdle exists at 35,000 level.
Nifty futures closed negative with a loss of 1.35% at 14,757 level. Among specific stocks, the trade setup looked bullish in ITC, IndiGo and HDFC but weak in BHEL, Tata Chemicals, ONGC, Bank of Baroda, Sun TV, RBL Bank, Canara Bank, Ashok Leyland, Tata Motors,
, , Federal Bank, PNB, BEL, Petronet, Siemens, GAIL, , Exide Industries, , IndusInd Bank, Havells, SBI, Cipla and ACC.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
