The 50-pack respected its previous day’s low and closed with a loss of around 45 points. It formed a bearish candle on the daily scale but still kept on forming higher highs and lows for the fourth session.
It formed a bullish candle on the weekly scale and higher highs for the seventh week. Now it has to continue to hold above the 17,600 level to extend the move towards 17,777 and then 18,000 levels while on the downside support can be seen at 17,500 and 17,350 levels.
India VIX moved up 5.71 per cent from 14.41 to 15.23 level. A spurt in India VIX may give a volatile swing to the market. It needs to hold below 13 level to continue the bullish momentum.
On the options front, maximum Put Open Interest stood at the 17,000 level followed by 17,500, while maximum Call OI was seen at 18,000 followed by 17,800 levels. Call writing was seen at 18,100 and then 17, 700 levels, while there was Put writing at 17,700 and then 17,600 levels. Options data suggested a broader trading range between 17,300 and 18,000 levels, while an immediate trading range could be seen between 17,400 and 17,800 levels.
Bank Nifty opened positive and crossed the 38,100 level, but dullness in select banking stocks brought it down. Buying interest was declined and the index closed with a gain of 143 points. It formed a bearish candle on the daily scale with long shadows and a bullish candle on the weekly frame with higher lows.
Now it has to hold above 37,500 level to witness a bounce towards 38, 250 and 38,500 levels, while on the downside support was seen at 37,250 and then 37,150 levels.
Nifty futures closed flat to negative with a loss of 0.04 per cent at 17,605 level. Among specific stocks, the trade setup looked bullish in Kotak Bank, M&M Financial, Polycab, Dabur, Bharti Airtel, SBI Life, Havells, Maruti, Exide, ICICI Pru, Axis Bank and LIC Housing Finance but weak in Indiabulls Housing, PNB, Bank of Baroda, SAIL, Bandhan Bank, AU Bank, NMDC, Tata Steel, Gujarat Gas, Glenmark, Lal Pathlabs, Muthoot Finance, MFSL, Jindal Steel, Bharat Forge, MGL, UPL and Sun TV.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
