India VIX moved up marginally by 0.20% from 21.50 to 21.54 level. VIX now needs to cool down and hold below 20 level to continue the ongoing momentum with a higher market base.
On the options front, maximum Put open interest was seen at 14,000 level followed by 15,000, while maximum Call OI was at 16,000 followed by 15,500. Put writing was seen at strike prices 15,100 and 15,000 while there was Call writing at 16,000 and then 15,300 levels. Options data suggested a wider trading range between 14,700 and 15,500 levels, while the immediate range was seen between 14,800 and 15,300 levels.
Bank Nifty opened positive, but failed to hold above 37,000 level and drifted towards 36,350. The rate-sensitive index widened losses as underperformance continued. It settled the day with a loss of around 300 points. The index formed a bearish candle on the daily scale and in the process formed a Doji with long upper shadow on the weekly scale. It continued to form lower highs and lows in the last two sessions. Now, it has to cross and hold above 36,500 level to witness a bounce to 37,000 and then 37,350 levels, while on the downside support seen at 36,250 and 36,000 levels.
Nifty futures closed negative with a 0.57% loss at 15,119 level. Among specific stocks, the trade setup looked bullish in Bank of Baroda, ONGC, Torrent Power, L&T Finance, BPCL, HPCL, NTPC, Coal India, TechM, Concor,
, Hindalco and BEL but weak in , Apollo Tyre, Bajaj Finance, M&M, Balkrishna Industries, Nestle India, HDFC Bank, Titan, Colgate Palmolive and UBL.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)