India VIX fell 2.31 per cent from 14.52 to 14.18 level. A fall in volatility from higher zone suggests the market decline can be bought into.
On the options front, maximum Put Open Interest stood at 16,500 level followed by 16,000, while maximum Call OI was seen at 17,000 level followed by 17,500. There was Call writing at 17,500 and then 17,200 levels, while Put writing was seen at 17,000 and then 16,900. Options data suggested a broader trading range between 16,500 and 17,500 levels, while the immediate trading range stood between 16,850 and 17,250 levels.
Bank Nifty opened with a gap up and headed towards 36,997 level, but it missed to hit a key hurdle at 37,000 and witnessed a profit-booking decline in the second half of the session. It outperformed the broader market and closed with a gain of around 150 points. It formed a Shooting Star candle on the daily scale with a long upper shadow, indicating that follow-up buying is missing at higher levels. Now, it has to hold above 36,500 level to witness a bounce towards 37,000 and 37,250 levels, while on the downside support was seen at 36,250 and then 36,000 levels.
Nifty futures closed negative with a loss of 0.21 per cent at 17,086 level. Among specific stocks, the trade setup looked bullish in IEX, Havells, UBL,
, , Astral, DLF, McDowell, Asian Paint, Tata Power, Lal Pathlabs, Chola Finance, SBI Life, ICICI Lombard, , Apollo Hospital and but weak in Tata Steel, M&M, Cipla, Gujarat Gas, HAL, Jindal Steel, , Infosys and NMDC.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
