F&O: Nifty continues to form higher highs & lows; VIX falls

Nifty on Thursday opened positive and made a new life time high at the 15,952 level. The bulls cheered the market and sustained the index at higher levels. It moved in a consolidative manner during the second half of the day and closed with a gain of 70 points. It formed a bullish candle on the daily scale and continued to form higher highs and lows in the last four sessions. Now, it has to hold above 15,900 level to witness a bounce towards 16,000 and 16,200 levels while on the downside, support exists at 15,800 and 15,750 levels.

India VIX fell 2.54 per cent from 12.59 to 12.27 level. A decline in the VIX has again provided stability to the market to commence the next move.

On the options front, maximum Put Open Interest was seen at 15,000 level followed by 15,500, while maximum Call OI was seen at 16,000 followed by 16,200 level. There was minor Call writing at 16,300 level and then 16,200, while Put writing was seen at 15,900 and then 15,800 levels. Options data suggested an immediate trading range between 15,700 to 16,000 level and then 16,200 level.

Bank Nifty opened positive, surpassed its immediate hurdle at 35,800 level and headed towards 36,000 level. Select banking heavyweights supported the index at higher levels even though it moved in a range towards the fag end of the session to close with a gain of 240 points. It formed a bullish candle on the daily scale and is forming higher highs and lows for the last four sessions. Now it has to hold above 35,800 level to move up towards 36,250 and 36,500 levels while on the downside support exists at 35,500 and 35,250 levels.

Nifty futures closed positive with a gain of 0.45 per cent at 15,940 level. Among specific stocks, the trade setup looked bullish in HCL Tech, LTI, L&T, Ambuja Cement, DLF, TechM, Wipro, Hindalco, UPL, ACC,

, Torrent Power, Voltas, , HDFC Bank, , , Tata Steel and ITC but weak in ONGC, GAIL, Indiabulls Housing Finance, RBL Bank, ZEEL, UBL, Eicher Motor, M&M Financial, HPCL and .

(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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