F&O: Nifty yet to show any clear trend; VIX eases 9%

F&O: Nifty yet to show any clear trend; VIX eases 9%

Nifty opened with a gapup on Friday and moved in a volatile fashion within a range of 150 points. It could not breach Thursday’s high and moved sideways without showing any clear trend. The index formed a Doji candle and also a Doji Star pattern by combining price behavior of the last two sessions.

It closed the day at its opening level with a gain of around 180 points. Now, it has to cross and hold above 14,550 level to witness a bounce towards 14,675 and 14,800 levels, while on the downside support exists at 14,400 and 14,250 levels.

India VIX fell 9.03% from 22.69 to 20.65 level. VIX needs to cool down below 20 level for the bullish grip to continue and the market movement to become smoother.

Since it is the beginning of a new series, options data lay scattered at different strike prices. On the options front, maximum Put Open Interest stood at 14,000 level followed by 13,500 while maximum Call OI was seen at 15,000 followed by 16,000 levels. Options data suggested an immediate trading range between 14,000/14,200 and 14,800/15,000 zones.

Bank Nifty opened with a gap up, but continued to move sideways throughout the day. It breached Thursday’s high but could not hold above the 33,500 level and drifted towards the 33,200 mark. Finally, the index managed to close with a gain of more than 300 points near the 33,333 mark. The index formed a Bearish Belt Hold kind of candle on the daily scale while the weekly structure continued to be negative. Now, the index has to hold above 33,500 level to witness a bounce towards 34,000 and 34,500 levels, while on the downside support exists at 33,000 and 32,500 levels.

Nifty futures closed negative at 14,628 level with 1.33% gain. Among specific stocks, the trade setup looked bullish in Concor, SAIL, Tata Steel, Godrej Consumers, Jindal Steel, Asian Paint, Titan, Shriram Transport, Berger Paint, Balkrishna Industries, Nalco, Chola Finance, HDFC, Tata Consumers, Grasim, Pidilite Industries, and

but weak in IndiGo, , PVR, and Indus Tower.

(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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