F&O: Nifty has to cross & hold above 15,100 to stay bullish
Nifty opened positive on Tuesday and after a rangebound start, it could not sustain at higher levels. However during the last hour, the index pulled back and closed near 15,100 level with a gain of 143 points. It formed a Bullish Hammer-like candle on the daily scale with long lower shadow, which indicates every decline got bought into. Nifty has been moving in a consolidative manner from the last few sessions and is not signalling a clear direction. Now, it has to decisively cross and hold above 15,100 level to witness a bounce towards 15,200 and 15,300 levels, while on the downside, immediate support was seen at 15,000 and then 14,900 levels.
India VIX fell 8.85% from 24.67 to 22.49 levels. A cooldown in VIX below 21-20 zone is needed for the bullish grip to continue.
On the options front, maximum Put open interest existed at 14,000 followed by 14,500 levels, while maximum Call OI was seen at 16,000 followed by 15,500 levels. Call writing was seen at 15,600 and then 15,500 levels, while there was Put writing at 15,000 and 14,500 levels. Options data suggested an immediate range between 14,900 and 15,250 levels.
Bank Nifty opened positive and saw quite a volatile day as it move in a range of 500 points. Banking stocks saw a positive momentum and as a result the index managed to hold well above the 35,500 mark. It concluded the session with a gain of around 590 points. The index formed a bullish candle on the daily scale and is forming higher highs and lows for the last two sessions. Now it has to hold above 35,500 level to witness a bounce towards 36,250 and the 36,500 levels, while on the downside, support exists at 35,250 and then 35,000 levels.
Nifty futures closed positive with a gain of 1.17% at 15,143 level. Among specific stocks, the trade setup looked bullish in Kotak Bank, ICICI Bank, TechM, Mindtree, TCS, Escorts, Chola Finance, Asian Paint, HCL Tech, BHEL and Infosys but weak in BPCL, NMDC, Tata Steel, Motherson Sumi, Jindal Stewl, Sun TV, Concor, PVR, Ashok Leyland, Tata Motors, Bank of Baroda and Godrej Consumers.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
