Nifty opened flat-to-positive on Thursday and surpassed its previous day’s high in the opening hour, but failed to sustain at higher zones and drifted to 14,353 with wild swings. However, the second half of the day had a swift recovery and the index closed near its high levels with a gain of around 75 points.
The index formed a Bullish hammer sort of candle with long lower shadow, indicating that declines were being bought into. Now, it has to decisively hold above 14,500 zone for an up move towards 14,700 and 14,850 zones while on the downside, support exists at 14,350 and 14,250 zones.
India VIX moved up by 2.10 per cent from 20.46 to 20.89 levels. India VIX needs to hold below 20 zones to again attract bullish stance in the market.
On options front, Maximum Put OI stood at 14,000 followed by 14,500 strike, while maximum Call OI stood at 15,000 followed by 15,500 strike. Call writing was seen at 15,200 and 14,900 strike, while minor Put writing was seen at 14,000 and 14,500. Options data suggested a wider trading range in between 14,250 to 14,850 zones.
Bank Nifty opened in the positive but got stuck in a range for most part of the day and was facing hurdles at 32,100 levels. The last hour saw positive momentum and the index closed with a gain of around 340 points. The banking index continues to outperform the broader market. It formed a Bullish candle on the daily scale with a long lower shadow. Now it has to hold above 32,000 for an up move towards 32,500 and 32,750 zones, while on the downside support can be seen at 31,500 and 31,250 zones.
Among specific stocks, the trade setup looked bullish in Glenmark, TCS, Cadila, Wipro, Cipla, ONGC, Siemens, Dabur, ICICI Bank, Page Industries, Tata Steel, Gail, Godrej Consumer Products, Lupin and Marico, while weakness was seen in Indiabulls Housing Finance, Eicher Motor, DLF, Bharat Forge, Grasim, PVR, Maruti, Ambuja Cement, Manappuram, Muthoot Finance and Voltas.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
