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Nifty opened in the negative on Wednesday amid weak global cues and faced weakness from its opening levels. A slight recovery was seen in the middle of the session, but the bears took over and ended the session with a loss of around 100 points. Technically, the index formed a bearish candle on the daily scale and wiped out all the gains of last few sessions. Now, it has to hold above 15,750 level to witness a bounce towards 15,900 and 16,000 levels, while on the downside supports can be seen at 15,700 and 15,600 levels.
India VIX moved up 1.82% from 14.60 to 14.86 level. The fear gauge was gradually falling since last six consecutive weeks and had come to the February 2020 level before seeing this spike. Lower volatility indicates an overall bullish market bias, but a small bounce in VIX can give some volatile cues to the market.
On the options front, maximum Put Open Interest stood at 15,500 level followed by 15,000 while maximum Call OI was seen at 16,000 followed by 16,500 level. There was minor Call writing at strike prices 15,800 and 15,900 while minor Put writing was seen at 15,600 and then 15,400 levels. Options data suggested an immediate trading range between 15,600 and 16,000 levels.
Bank Nifty opened negative and moved in the negative to rangebound manner throughout the session. It formed a bearish candle and an Outside Bar on the daily scale and got stuck in a range with restricted upside. Now it has to cross and hold above 35,000 level to move towards 35,250 and 35,500 levels, while support on the downside exists at 34,750 and 34,500 levels.
Nifty futures closed negative at 15,777 level with a loss of 0.64%. Among specific stocks, the trade setup looked bullish in Tata Power, HPCL, Tata Consumers, , NTPC, , Dabur, HUL, Infosys and McDowell but weak in Adani Ports, Adani Enterprise, LIC Housing, BHEL, , Voltas, IndiGo, Hindalco, Vedanta, JSW Steel, , , TVS Motor 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)
India VIX moved up 1.82% from 14.60 to 14.86 level. The fear gauge was gradually falling since last six consecutive weeks and had come to the February 2020 level before seeing this spike. Lower volatility indicates an overall bullish market bias, but a small bounce in VIX can give some volatile cues to the market.
On the options front, maximum Put Open Interest stood at 15,500 level followed by 15,000 while maximum Call OI was seen at 16,000 followed by 16,500 level. There was minor Call writing at strike prices 15,800 and 15,900 while minor Put writing was seen at 15,600 and then 15,400 levels. Options data suggested an immediate trading range between 15,600 and 16,000 levels.
Bank Nifty opened negative and moved in the negative to rangebound manner throughout the session. It formed a bearish candle and an Outside Bar on the daily scale and got stuck in a range with restricted upside. Now it has to cross and hold above 35,000 level to move towards 35,250 and 35,500 levels, while support on the downside exists at 34,750 and 34,500 levels.
Nifty futures closed negative at 15,777 level with a loss of 0.64%. Among specific stocks, the trade setup looked bullish in Tata Power, HPCL, Tata Consumers, , NTPC, , Dabur, HUL, Infosys and McDowell but weak in Adani Ports, Adani Enterprise, LIC Housing, BHEL, , Voltas, IndiGo, Hindalco, Vedanta, JSW Steel, , , TVS Motor 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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