The index formed a bullish candle on the daily scale and negated the formation of lower highs of last six sessions. Now, it has to hold above 14,750 level to witness a bounce towards 14,900 and 15,000 levels, while on the downside immediate support exists at 14,700 and then 14,600 levels.
India VIX rose 0.85 per cent from 20.49 to 20.66 levels. It needs to cool down below 20 level for the bullish grip to strengthen and the market move to smoothen.
On the options front, maximum Put open interest stood at 14,000 level followed by 14,500 while maximum Call OI was seen at 15,000 level followed by 15,500. There was Call writing at 14,900 and then 14,800 levels while Put writing was seen at 14,800 and then 14,700 levels. Options data suggested a wider trading range between 14,500 and 15,000 levels.
Bank Nifty opened positive and continued to build on its strength for most part of the session. It touched a high of 34,360, which lies near its 50 DMA, and settled the session with a gain of around 600 points. The index negated the formation of lower highs of last six sessions and formed a bullish candle on the daily scale. Now it needs to hold above 34,000 level to witness a bounce towards 34,500 and 35,000 levels, while on the downside support exists at 33,500 and 33,333 levels.
Nifty futures closed positive at 14,827 level with 0.59% gain. On the stocks front, the trade setup looked bullish in Adani Enterprise, IndiGo, ACC, UltraTech Cement, Ambuja Cement, MFSL, Titan, Tata Consumers, McDowell, Axis Bank,
, Berger Paint, UBL and Pidilite Industries but weak in , Gail, Zee, Indus Tower, M&M, 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)