India VIX fell down by 6.78 percent at 15.89 levels. Now, VIX needs to hold below 16.50-16 zones to get short term stability in the market.
Bulls remained in control of D-Street for the second consecutive day in a row on Thursday after falling for eight consecutive days in a row and formed a bull candle on the daily charts.
The index is comfortable trading above 100-day moving average as well as 5, and 13-DEMA on the daily charts which is a positive sign for the bulls, but for bulls to regain control, the index has to hold above 10,900 levels, suggest experts.
But, it somebody plans to go long on the index then trading with strict stop losses is a better bet for capital preservation. A trailing stop loss below 10640 should be kept for all long positions, they say.
The touch-and-go moment with 10,800 suggests that there is some pressure at higher levels. The Nifty50 which opened at 10,744 slipped to an intraday low of 10,721 before it bounced back towards 10800. The index hit an intraday high of 10808 before closing at 10,789 up 54 points.
India VIX fell down by 6.78 percent at 15.89 levels. Now, VIX needs to hold below 16.50-16 zones to get short term stability in the market.
Bank Nifty managed to hold above 27000 zones and formed a bullish candle on the daily scale which suggests dips are being bought into.
“In line with our projections, Nift50 appears to have embarked on a multi-day upswing from the recent lows of 10,585 levels as it signed off the session in style with a decent bullish candle for the second day in a row by clearing near-term hurdles,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“However, the real test for bulls lies in clearing the critical resistance zone of 10890 – 10914 levels. If bulls manage to clear this hurdle and sustains above 10900 levels then this pullsback swing can further get extended up to 11011 levels,” he said.
Mohammad further added that on the downsides, 10640 appears to be the critical support as of now below which the current bullish momentum shall fade away. Hence, technically, for all long positions, right stop loss level appears to be a close below 10640.
On the options front, maximum Put OI is placed at 10700 followed by 10400 strikes while maximum Call OI is placed at 11000 followed by 10900 strikes.
Put Writing is seen at 10700 followed by 10800 strikes while Call writing is seen at 10900 followed by 10950 strikes. Options band signifies a trading range between 10650 to 10929 zones.
“The Nifty index opened flattish but gradually extended its gains towards 10800 zones. It retested previous swing low of 10585 zones in the last few days. It formed a Bullish Candle on a daily scale,” Chandan Taparia, Associate Vice President, Analyst-Derivatives, Motilal Oswal Financial Services told Moneycontrol.
“It has to hold above 10,750 zones to extend its gains towards 10,820 and then 10,888 zones while on the downside support is seen at 10,680 zones,” he said.
