F&O: Nifty range in 14,000-15,000 zone now; easing VIX only solace

Nifty opened positive on Tuesday and remained rangebound for the first half of the session. However, weakness crept in during the second half and the index dropped to 14,461 level. Technically, it formed a bearish candle on the daily time frame chart and wiped out the recovery of the last session.

Now, it has to hold above 14,500 level to witness a bounce towards 14,700 and 14,800 levels, while on the downside support exists at 14,400 and 14,250 levels.

India VIX fell 2.87% from 23.69 to 23.01 level. India VIX needs to hold below 20 level to again attract bullish stance.

On the options front, maximum Put Open Interest stood at 14,000 level followed by 13,500, while maximum Call OI was seen at 15,000 level followed by 15,500. There was marginal Call writing at strike price 15,000, while minor Put writing was seen at strike price 14,000. Options data suggested a wider trading range between 14,000 and 15,000 levels, while the immediate trading range was seen in the 14,200-14,800 zone.

Bank Nifty opened with a gap up, and even though it remained in the positive territory in the initial hours of trade, the second half pulled the index and it breached the 32,200 level. Even with such weakness, banking stocks slightly outperformed the broader market and the index settled the session with a loss of around 200 points.

The index formed a bearish candle on the daily scale with a long upper shadow, which indicated sustained selling at the key resistance at 33,000 level. The index negated the lower highs and lows of last two sessions, but failed to surpass the 50 DEMA. Now it has to hold above 32,250 level to witness a bounce towards 33,000 and 33,333 levels, while on the downside support exists at 32,000 and 31,500 levels.

Nifty futures closed negative at 14,551 level with a loss of 0.91%. On the stocks front, the trade setup looked bullish in Bank of Baroda, GAIL, Marico, SRF, Bharat Forge, HPCL, , MGL, Bajaj Finance and Vedanta but weak in , Tata Consumers, , , M&M Financial, , HDFC, Biocon, MRF, Titan and ITC.

(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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