F&O: Nifty trading range shifts to 13,800-14,700, as VIX declines 8%

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F&O: Nifty trading range shifts to 13,800-14,700, as VIX declines 8%


Nifty opened with a gap up on Monday and the Budget announcement cheered the market and elevated Nifty by more than 600 points to almost touch the 14,300 mark. The index negated the formation of lower tops and bottoms and had its support near the 50 DEMA. The index bounced back sharply to close the session with a decent gain of around 650 points.

It formed a strong bullish candle on the daily scale and regained more than half of the losses made in the last six sessions. Now it has to hold above 14,200 level to witness a fresh bounce towards the 14,500 mark and then 14,750, while on the downside major support exists at 14,000 and then 13,800 levels.



India VIX fell 7.96 per cent from 25.34 to 23.32 levels. After the Budget, volatility dropped from highs. It now needs to hold below 20 level to attempt a new lifetime high.

On the options front, maximum Put Open Interest stood at 13,000 level followed by 13,500, while maximum Call OI was seen at strike prices 15,000 and 14,500. Options data suggested a wider trading range between 13,800 and 14,700 levels.

Bank Nifty opened with a gap up and touched its lifetime high of 33,305. The banking index registered the highest intraday gains by closing with a gain of more than 2500 points, or nearly 8 per cent. All the banking stocks peaked and the bullishness continued throughout the day. The index formed a strong bullish candle on the daily scale and continued to form higher tops and bottoms from the second session. It now has to hold above the 32,500 mark to witness a bounce towards 33,333 and then 34,000 levels, while on the downside support exists at 32,000 and then 31,750 levels.

Nifty futures closed positive at 14,394 level with a gain of 5 per cent. The trade setup looked positive in

, SBI, Cummins India, Ashok Leyland, , SAIL, L&T, , , Grasim, Titan, Bosch, Bharti Airtel, Concor, Voltas, Shriram Transport, Bajaj Auto, Nalco and TVS Motor but weak in UPL, Dr Reddy’s, Cipla, Lupin and McDowell.

(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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