Nifty formed a Small Bearish candle on the daily scale with long shadows on either side, which indicated a tussle between the bulls and the bears. The index continued to form lower highs and lows for last two sessions. Now, it has to cross and hold above the 15,000 mark to witness a bounce towards the 15,150 and 15,250 levels, while on the downside, immediate support exists at 14,800 and then 14,600 levels.
India VIX moved up 5.84% from 24.15 to 25.16 levels. It is turning highly volatile in a broad range between 21.80 and 29.64 level since the last nine sessions. VIX needs to cool down below the 21-20 zone for the bullish grip to continue.
On the options front, maximum Put Open Interest stood at 14,000 level followed by 14,500, while maximum Call OI exists at 16,000 and 15,000 levels. The index saw Call writing at 15,500 and then 15,000 levels while Put writing was seen at 14,000 and 145,00 levels. Options data suggested a wider trading range between 14,500 and 15,500 levels, while the immediate trading range exists between 14,750 and 15,250 levels.
Bank Nifty opened with a gap down and remained under pressure throughout the session. Banking stocks are not holding up and as a result, the index concluded the day near the 35,200 level with a loss of more than 500 points. The index formed a bearish candle on the daily scale and continued to form lower highs and lows in last two sessions. Now, it has to cross and hold above the 35,500 mark to witness a bounce towards 36,000 and 36,250 levels, while on the downside, support exists at 35,000 and 34,500 levels.
Nifty futures closed negative at 14,981 level with a loss of 0.82%. Among specific stocks, the trade setup looked bullish in Vedanta, Maruti, MGL, Kotak Bank, Hero MotoCorp, Colgate-Palmolive, HUL, UltraTech Cement and RIL, while but it was weak in Apollo Hospital, Canara Bank, SAIL,
, , Manappuram, Wipro, M&M Finance, PNB, Shriram Transport, SBI and Bosch.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)