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F&O: Nifty back to bullish ways, VIX moves in sync, drops 10%

Nifty opened with a gap up above Tuesday’s high of 15,728 and witnessed buying interest towards 15,834 level. It finally closed with a gain of around 190 points and covered all the losses of the last two sessions. It formed a bullish candle on the daily scale and negated the lower highs and lows of the last two sessions. Now, it has to hold above 15,800 level to witness a bounce towards 15,962 and 16,000 levels, while on the downside support exists at 15,700 and 15,600 levels.

India VIX fell 9.96 per cent from 13.20 to 11.88 level. Declines in the volatility indicates the bulls are again holding the command and buying interest is seen at every meaningful declines.

On the options front, maximum Put Open Interest stood at 15,000 followed by 15,500 while maximum Call OI was at 16,000 followed by 15,800 levels. There was Call writing at 16,000 and then 16,100 while Put writing was seen at 15,800 and then 15,700 levels. Options data suggested a broader trading range between 15,600 and 16,000 levels.

Bank Nifty opened positive and while it surpassed its previous day’s high in the initial tick. The index failed to cross a key hurdle at 35,000 level and dipped towards 34,557 level. Banking stocks witnessed pressure and the index closed with a gain of 260 points. It formed a bearish candle on the daily scale, but negated the formation of lower highs since the last three sessions. Now, as long as it holds below 35,000 level, weakness can continue towards the next support at 34,250 and 34,000.

Nifty futures closed positive with a gain of 1.17 per cent at 15,820 level. Among specific stocks, the trade setup looked bullish in

, Manappuram, JSW Steel, ICICI Pru, TechM, , , , Tata Steel, McDowell, L&T, Apollo Hospital, Wipro, Infosys, Titan, Godrej Consumers, Voltas, and SRF but weak in Bajaj Auto, TVS Motor, Cipla and Biocon.

(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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