By Shivangi Sarda
Nifty index opened positive but failed to hold its opening zones and witnessed slight dullness in the initial tick. It was followed by some consolidation throughout the session. It witnessed volatile move in the last hour of the day and finally closed with gains of around 20 points. It negated its lower highs formation of the last four trading sessions and headed to 18325 marks but gave up most of its gains. It formed a Bearish candle on daily frame with profit booking at higher zones.
India VIX was up by 1.46% from 13.84 to 14.04 levels. Volatility has been cooling off from the last eight weeks. On Option front, Maximum Call OI is at 18300 then 18400 strike while Maximum Put OI is at 18000 then 18200 strike. Call writing is seen at 18300 then 18350 strike while Put writing is seen at 18300 then 18250 strike. Option data suggests a broader trading range in between 18000 to 18600 zones while an immediate trading range in between 18100 to 18400 zones.
Bank Nifty opened positive by more than 200 points and after a range-bound move in the initial half of the session, it headed towards a fresh lifetime high of 42860 zones. It was however followed by profit-taking and closed with gains of around 270 points. It formed a Doji sort of candle on the daily frame and has been making higher highs – higher lows from the last two sessions.
For weekly Bank Nifty, Maximum Put OI is at 42500 then 42000 strike and maximum Call OI is placed at 43000 then 43500 strike. We have seen Call writing in 43000 with unwinding at 42500 while Put writing is witnessed at 42700 strike. Now it has to hold above 42500 zones for an up move towards 43000 and 43250 zones whereas supports are placed at 42350 and 42200 zones.
Now, it has to hold above 18200 zones, for an up move towards 18350 then 18442 zones whereas supports are placed at 18088 and 17950 zones. Traders are advised to be with positive stock-specific action in PNB, IndiGo, Syngene, Apollo Hospital, AB Capital, MCX, Torrent Power, Canara Bank, Cummins India, JSW Steel, L&T Finance Holdings, Dalmia Bharat, NMDC, Dabur, State Bank of India (SBI) and Sun Pharma, while weakness in ICICI Prudential, Mphasis, Powergrid, Siemens, ABFRL, Oberoi Realty, Tata Chemicals, Hero MotoCorp, PEL and RBL Bank.
(Shivangi Sarda is an Analyst – Equity Derivatives & Technicals, Broking & Distribution, Motilal Oswal Financial Services Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)