India VIX fell 4.55 per cent from 13.56 to 12.94 level. Declines in the VIX after a spurt in last session have provided some stability to the market.
On the options front, maximum Put Open Interest stood at 15,500 followed by 15,000 levels, while maximum Call OI was seen at 16,000 followed by 15,800 levels. Minor Call writing was seen at 15,700 and then 16,100 levels, while there was minor Put writing at 15,200 and then 15,300 levels. Options data suggested an immediate trading range between 15,500 and 15,900 levels.
Bank Nifty opened negative and moved in a zigzag fashion throughout the day. There was weakness in the banking stocks and the index remained overpowered by the bulls for most part of the session to close with a loss of around 200 points. The index formed a bearish candle with a long lower shadow on the daily chart, while a Doji candle on the weekly scale indicated a tug of war between the bulls and the bears for a decisive move. Now, the index has to hold above 35,000 level to move up towards 35,250 and 35,500 levels, while on the downside, support exists at 34,750 and 34,500 levels.
Nifty futures closed negative with a loss of 0.09 per cent at 15,721 level. Aming specific stocks, the trade setup looked bullish in Tata Steel,
, , Vedanta, Glenmark, Nalco, MFSL, Torrent Pharma, , Grasim, Hindalco, Divi’s Labs, , Ramco Cement, MGL, Ambuja Cement, Tata Consumer and Tata Power but weak in Bajaj Auto, HPCL, TCS, Concor, Gail, Wipro, , Britannia and RIL.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
