Technically, Nifty formed a small-bodied candle similar to a Doji on the daily and weekly scales with long shadows, which indicated a tug of war between the bulls and the bears. Now, it has to cross and hold above the 14,400 mark to witness a bounce towards 14,600 and 14,700 levels, while on the downside, support exists at 14,250 and 14,150 levels.
India VIX fell 1.43% from 23.02 to 22.69 level. India VIX needs to hold below 20 level to again attract a bullish stance in the market.
On the options front, maximum Put Open Interest stood at 14,000 level followed by 13,500, while maximum Call OI was seen at 15,000 followed by 14,500 levels. There was Call writing at strike prices 15,000 and 14,800 while Put writing was seen at 14,000 and 14,200 levels. Options data suggested a wider trading range between 14,000 and 14,700 levels.
Bank Nifty opened negative, but managed to move into the positive territory and headed towards the 32,150 mark. However, it failed to hold at higher levels and concluded the session with a loss of around 60 points. The index formed a bullish candle on the daily and weekly scales with a major weekly support at 30,500 level.
Now, it has to trade above the 31,700 mark for a bounce towards 32,250 and 32,500 levels, while support on the downside can be seen at 31,250 and 31,000 levels. Nifty futures closed negative at 14,333 level with the loss of 0.49%.
Among specific stocks, the trade setup looked bullish in ICICI Pru Life, Shriram Transport, Cadila, , NTPC, PowerGrid, , MGL, Motherson Sumi, Chola Finance, SRF and BPCL but weak in Escorts, Britannia, GAIL, M&M, ZEEL, HUL, TechM, and Infosys.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
