F&O: Nifty charts show buying on dips; cooling VIX helps sentiment

F&O: Nifty charts show buying on dips; cooling VIX helps sentiment

Nifty opened flat on Friday and gradually extended the move towards 15,250 level in the initial part of the session. However, it failed to hold at higher levels and drifted towards the 15,080 mark in the latter part of the day, and closed with a marginal loss. The index formed a Doji candle on the daily chart and a small bullish candle on the weekly scale, which suggested buying at lower levels. The index has got stuck between 15,000 and 15,250 levels for the past five sessions. Now, it has to hold above 15,050 level to continue its bullish momentum towards 15,250 and 15,500 levels, while on the downside, major support can be seen around 15,000 and 14,850 levels.

India VIX fell 4.33% from 23.04 to 22.04. Now, VIX needs to cool down and hold below 21 level for the continuation of the ongoing momentum with a higher market base.

On the options front, maximum Put open interest stood at 14,000 level followed by 14,500, while maximum Call OI was seen at 15,500 followed by 16,000 level. There was Put writing at 14,500 and 15,100 levels while Call writing was seen at 15,500 and 15,800 levels. Option data suggested a wider trading range between 14,500 and 15,500 levels, while the immediate range was seen between 15,000 and 15,300 levels.

Bank Nifty opened flat but extended its positive move gradually towards the 36,300 mark amid buying interest in select private banks. The index relatively outperformed the benchmark index and managed to close above the 36,000 mark. It formed a bullish candle on the daily scale and a Doji on the weekly scale. The index got stuck in the 35,500-36,600 range for last six sessions, as buying emerged at lower levels while a hurdle was seen at higher levels. Now, the index has to hold above 36,000 level to witness a move towards the 36,500 – 36,600 zone, while on the downside support was seen at 35,700 and 35,500 levels.

Nifty futures closed with a marginal loss of 0.14% at 15,163 level. Among specific stocks, the trade setup looked bullish in

, , PEL, M&M Financials, Muthoot Finance, ICICI Bank, Ramco Cement, Infosys, Axis Bank and HDFC but weak in ITC, Bosch, ONGC, Bharti Airtel, Titan and .

(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)

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