F&O: Nifty forms bullish candle on weekly chart; falling VIX helps bulls’ case

Nifty opened positive on Friday and made yet another lifetime high at 15,962 level. It moved in a consolidative manner for most part of the day with a slight profit-booking decline from higher levels. It formed a bearish candle on the daily scale, as it closed lower than its opening levels but continued to form higher highs and lows since the last five sessions. It formed a bullish candle on the weekly frame even as supports gradually shifted higher for the next leg of rally. Now, it has to hold above 15,900 zone to witness an up move towards 16,000 and 16,200 levels, while support on the downside exists at 15,800 and 15,750 levels.

India VIX fell 4.60 per cent from 12.27 to 11.70 level. A decline in VIX has again provided stability to the market to commence the next move.

On the options front, maximum Put Open Interest stood at 15,000 level followed by 15,500, while maximum Call OI was at 16,000 followed by 16,500 levels. Minor Call writing was seen at 16,300 and then 16,200 levels, while there was Put writing at 15,000 and then 15,400 levels. Options data suggested a shift in higher immediate trading range in between 15,700 and 16,000 and then 16,200 zone.

Bank Nifty opened positive but failed to surpass previous day’s high of 35,985 and moved in a negative to rangebound manner throughout the day. It formed a Bearish candle and an Inside Bar on the daily scale while continued its higher highs and lows since the last five sessions. Now it has to hold above 35,800 zones to move up towards 36,000 and 36,250 zones while on the downside support exists at 35,500 and 35,250 levels.

Nifty futures closed flat to positive with gains of 0.01 per cent at 15938 levels. Among specific stocks, their trade setup looked bullish in IRCTC, Nalco, Glenmark, Havells, UBL,

, Divi’s Lab, Nam India, , NMDC, Mcdowell, Bata India, DLF, , Tata Steel, Biocon, , Powergrid, Reliance, SRF, Ramco Cement, LT and Hindalco but weak in HCL Tech, , Eicher Motor, IGL, Marico, Concor, MGL and ZEEL.

(Chandan Taparia is a 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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