India VIX rose 8.97 per cent from 15.77 to 17.18 level. A spike in VIX suggested volatile move could but the main reason for the spike was Call unwinding pressure in the market. Now VIX needs to cool down below the 15-14 zone to continue the smooth market ride.
On the Options front, maximum Put Open Interest stood at 17,500 followed by 18,000 levels, while maximum Call OI was at 18,500 followed by 19,000 levels. Minor call writing was seen at the 18,900 mark and then 18,700 while Put writing was seen at 18,500 and 18,400 strikes. Options data suggested an immediate trading range between 18,200 and 18,700 levels.
Bank Nifty opened with a gap up and inched towards the 40,000 level in the initial tick, marking its new all-time high at 39,947. Select heavyweight banking stocks built strength in the index and it closed with gains of around 340 points. The index formed a bearish candle on the daily scale, but has been forming higher lows since the last 10 sessions in a row. Now it has to hold above 39,500 level to witness a bounce towards 40,000 and 40,500 levels, while on the downside, major support wad seen at 39,300 and 39,000 levels.
Nifty futures closed positive with a gain of 0.74 per cent at 18,490 level. Among specific stocks, the trade setup looked bullish in Tatapower, VEDL, National Aluminium Company, IRCTC, PNB, Bank Baroda, Hindalco, Aarti Industries, Infosys, Dixon, TechM, JSW Steel, BEL, ICICI Bank, Canara Bank, ITC, Maruti and Escorts but weak in Amara Raja Battery, Polycab, Cadila, HCL Tech, Godrej Consumer Products, Dr Reddy and Lalpath Labs.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
