The index has been forming higher lows since the last two sessions and has managed to hold above the 50-day EMA. Now, it has to hold above 14,750 level to witness a bounce towards 15,000 and 15,100 levels, while on the downside, support was seen at 14,600 and 14,500 levels.
India VIX fell 0.80% from 22.65 to 20.48 levels. The index needs to cool down below 20 level for the bullish grip to continue and ensure that the market move remains smooth.
On the options front, maximum Put open interest stood at 14,000 level followed by 14,500, while maximum Call OI was seen at 15,000 followed by 16,000 levels. There was Call writing at strike prices 14,800 and 15,200 while Put writing was seen at 14,000 and then 14,500 levels. Options data suggested an immediate trading range between 14,500 level and the 15,000-15,200 zone.
Bank Nifty opened with a gap up, but moved in a range for most part of the session. The banking index concluded the day with a gain of around 550 points, but it has been underperforming the broader market since the past two sessions. The index formed a bullish candle on the daily scale and has been forming higher highs and lows since the past two sessions. Now it has to hold above 33,500 level to witness a bounce towards 34,000 and 34,500 levels, while on the downside support exists at 33,333 and 33,000 levels.
Nifty futures closed positive at 14,914 level with 2.09% gain. Among specific stocks, the trade setup looked bullish in
, Mindtree, Adani Enterprise, JSW Steel, Tata Steel, HCL Tech, , Biocon, Nestle India, HUL, Shree Cement, Divi’s Labs, Cummins India, , TCS and Titan but weak in M&M Finance, PFC, REC, IndiGo, RBL Bank, M&M and Bata India.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
