Nifty index opened flattish but managed to hold above 8,080 zones and headed towards 8,150 levels. Index traded in a small trading range but sustained buying was seen in many small cap and midcaps counters which cheered the sentiment of the market.
Now it has to continue to hold above 8,080 zones to witness an up move towards 8,188 zones while on the downside multiple supports are exist at 8,080 then 8,040 levels. Market has taken a pause from recent turmoil and holding the gains with higher lows from last two sessions which has a sign of limited downside as of now.
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India VIX cooled down by 4.34% at 17.72 levels.
On the option front, maximum Put open interest (OI) is intact at 8,000 followed by 8,100 strike while maximum Call OI is at 8,300 followed by 8,400 strike. We have seen fresh Put writing at 8,100 strike which indicates that 8040-8050 zone is likely to hold for next couple of trading sessions while fresh Call writing at 8200 and 8300 strike would keep the upside cap till 8188 then 8242 zones.
Bank Nifty traded in a narrow range but managed to hold above 17,500 zones for second consecutive sessions. It has support at 17,350 then major at 17,000 zones while on upside hurdle exists at 17,750-17,800 then 18,000 levels.
(The author is derivatives analyst, equity research at Anand Rathi Financial Services)