Nifty options data suggests wider trading range of 16600-17200, Bank Nifty needs to hold above 35000

Call writing is seen at 17200 then 17100 strike while Put writing is seen at 16900 then 16800 strike. Options data suggests a wider trading range in between 16600 to 17200 zones.

India VIX needs to further cool down to 15-14 zones for complete stability in the market. (Image: REUTERS)

By Chandan Taparia

Nifty 50 index opened gap up and moved in a positive to range-bound manner throughout the session yesterday. The last hour of the day saw a quick pullback and the index inched towards 17000 zones. It surpassed its previous day’s high and closed with gains of around 180 points. It formed a Bullish candle on daily scale and has been forming higher highs – higher lows from the last two trading sessions.

Nifty trading range in 16600-17200

India VIX was down by 5.47% from 17.53 to 16.58 levels. Volatility has been cooling down from the last two sessions which is giving comfort to the bulls for a bounce-back move. Now it needs to further cool down to 15-14 zones for complete stability in the market. On the Options front, Maximum Call OI is at 18000 then 17000 strike while Maximum Put OI is at 16500 then 16000 strike. Call writing is seen at 17200 then 17100 strike while Put writing is seen at 16900 then 16800 strike. Options data suggests a wider trading range in between 16600 to 17200 zones.

Bank Nifty outlook

Bank Nifty opened gap up and moved in a positive to muted manner for the most part of the day. It closed above 35000 levels with gains of around 420 points. It formed a Bullish candle on daily scale and covered its losses of the last two sessions.

For weekly Bank Nifty, Maximum Put OI is at 34000 strike and maximum Call OI is placed at 36000 strike. We have seen Call writing in 35200 strike with unwinding at 37500 while Put writing is witnessed at 34800 strike. Now it has to hold above 35000 zones, for it to move towards 35250 and 35500 zones whereas support shifts higher to 34600 and 34350 zones.

What to watch out for

On sectoral front, all the sectors traded in the positive territory, out of which Realty, Pharma, Metal and PSU Banking sectors showed the most strength and buying interest in the market.

On stocks front, positive stance was seen PI SRF, Nationalum, IEX, Auropharma, Hindalco, L&TFH, IRCTC, Tata Power, UPL, Cadila, Lupin, Biocon, Eicher Motor, Cumminsind, Mindtree, Godrejcp, Havells, Sunpharma, LT, Deepakntr, Reliance, ABFRL, LTI, UBL and Mcdowell while weakness in SBI Life, IOC and Grasim.

(Chandan Taparia – Vice President – Equity Derivatives & Technicals, Broking & Distribution, Motilal Oswal Financial Services Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)

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