The index has got stuck in a range since last few sessions and has been unable to emerge with a clear trend. It has formed an Inside Bar and a bearish candle along with long shadow on the daily scale. Now, the index has to hold above 14,700 level to witness a bounce towards 14,850 and 15,000 levels, while support on the downside exists at 14,550 and 14,450 levels.
India VIX fell 1.79% from 21.21 to 20.84 levels. Volatility has to cool down below 20 level to trigger some buying interest in the market.
On the options front, maximum Put Open Interest was seen at strike price 14,000 followed by 14,500 while maximum Call OI stood at 15,000 followed by 16,000 levels. There was Call writing at 15,100 and then 14,800 levels, while Put writing was seen at 13,500 with a significant unwinding at 15,000 level. Options data suggested a wider trading range between 14,400 and 15,100 levels.
Bank Nifty opened positive, but remained quite choppy throughout the day. The bears were predominant in the banking stocks. However, some recovery was seen in the last hour of trade and the index ended the day with a loss of around 175 points. It formed a bearish candle on the daily scale and made lower highs on the weekly scale for the fourth week. Now as long as it remains below 33,000 level, weakness and underperformance could continue for a downward move towards 32,000 and 31500 levels, while on the upside hurdles are seen at 33,333 and 33,500 levels.
Nifty futures closed positive at 14,763 level with a gain of 0.44%. Among specific stocks, the trade setup looked bullish in Adani Ports, SRF, Adani Enterprise,
, Glenmark, Tata Consumers, Cadila Healthcare, Asian Paints, Pidilite Industries, JSW Steel, Ramco Cement, MFSL, , Divi’s Labs, Apollo Hospital, Biocon, Dabur, Sun Pharma and Lupin but weak in MGL, UBL, PowerGrid, , , Escorts, Eicher Motor and Axis Bank.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)