Technically, it formed a bearish candle on the daily scale and negated the formation of higher highs and lows of last two sessions. Now, it has to hold above the 14,950-15,000 zone to see gains towards 15,200 and then 15,350 levels, while on the downside support exists at 14,900 and 14,800 levels.
India VIX moved up marginally by 0.40% from 19.24 to 19.31 level. The fear gauge needs to hold below 20 level to extend the bullish momentum.
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 level followed by 15,500. There was Call writing at strike prices 15,100 and 15,300, while Put writing was seen at strike prices 14,900 and 15,000. Options data suggested a shift in the trading range to 14,700-15,300 zone.
Bank Nifty opened negative and traded southwards for most part of the day. A profit booking decline was seen across banking stocks and the weakness took the index to 33,600 level. The index formed a Doji candle on the daily scale, as it closed near the opening level with a loss of around 240 points. Now it has to hold above 33,500 level to witness a bounce towards 34,000 and the 34,250 levels, while on the downside support exists at 33,333 and 33,000 levels.
Nifty futures closed negative at 15,048 level with a 0.64% loss. Among specific stocks, the trade setup looked bullish in BHEL, HPCL, UBL, Sun Pharma, Lupin, Apollo Hospital, Bata India,
, Aurobindo Pharma, , IOC and but weak in PNB, HDFC, JSW Steel, , Kotak Bank, M&M Financial, ITC and L&T.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
