Nifty formed a Bullish candle on the daily scale and continued forming higher highs – higher lows from the last six trading sessions. Now it has to continue to hold above 13,200 to witness an up move towards 13,500 and 13,750 levels, while on the downside major support exists at 13,000.
India VIX was marginally down by 0.03 per cent at 18.02. Lower levels of volatility suggests that bulls are holding a tight grip and any small decline could be bought in the market.
Maximum Put open interest stood at 12,000 followed by 13,000 levels, while maximum Call OI was at 13,000 followed by 13,500. Marginal Call writing was seen at 13,500 and 13,700, while Put writing was at 13,300 and 13,000. Option data suggests an immediate trading range in between 13,200 and 13,500 levels.
Bank Nifty opened flattish but after a small dip it continued moving towards 30,350 level. It formed a small Bullish candle on the daily scale and continued to form higher lows from the last three trading sessions. Now it has to hold above 30,000 to witness an up move towards 30,500 and 30,800-31,000 levels, while on the down side support exists at 29,800 and 29,500 levels.
Nifty Future closed positive with gains of 0.55 per cent at 13,384 levels. The trade setup looked positive in M&MFin, Glenmark, UPL, ZEEL, Sun TV, Lupin, Bharti Airtel, HUL, ITC, TVS Motor, REC Ltd, Gail, HDFC Ltd, SBI and Sun Pharma, while weakness was seen Vodafone Idea, Cholamandalam Investment and Finance Company, Kotak Mahindra Bank, ACC and Havells.
(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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