market analysis: F&O: Nifty may hit lifetime high if it holds 15,250 level; VIX falls nearly 5%

The Nifty index opened on a positive note on Thursday and after a small consolidation, bulls continued to cheer the market and took the index towards the 15,384 mark. It witnessed good momentum in the last hour of the session and registered its highest-ever close, while it’s just a few points away from hitting the new lifetime high marks. Technically, it formed a small bodied Bullish candle on the daily scale and continued its formation of higher highs and higher lows of the last five sessions.

Now, Nifty has to hold above 15,250 level to witness an up move towards lifetime high of 15,431 and 15,500 levels, while on the downside, support exists at 15,200 and 15,150 zones.

India VIX fell by 4.60 per cent from 20.87 to 19.91 levels. India VIX needs to hold below 20 zones to extend the bullish market momentum towards new lifetime territory.

Since it is the beginning of a new series, option data is scattered at different strikes. On the option front, Maximum Put Open Interest was seen at 14,000 level, followed by 14,500, while maximum Call OI was seen at 16,000, followed by 15,800 strike. Call writing was seen at 15,300 and 15,800 levels, while Put writing was seen at 15,000 level then 14,700. Option data suggests a trading range in between 15,000 to 15,800 levels.

Bank Nifty opened flat, but managed to hold 34,500 zone and witnessed sustained buying interest throughout the day to hit a high of 35,220 mark in the last minutes of the session. It closed near its day’s high levels with gains of around 410 points. It formed a Bullish candle on the daily scale and moved higher after the consolidation of the last three sessions. Now, it has to hold above 35,000 levels to witness an up move towards 35,500 and 36,000 levels, while on the downside, support exists at 34,750 and 34,500 levels.

Nifty futures closed positive with gains of 0.23 per cent at 15,338. On the stocks front, bullish setup was seen in PNB, PEL, Mindtree, ZEE, SBI, Marico, Siemens, MGL, McDowell,

, Kotak Bank, Axis Bank, Grasim, , , IndusInd Bank, Wipro, Titan, HeroMoto and TCS, while weakness was seen in Cummins, Cholamandalam Finance, HDFC, , Adani Ports, ONGC, NTPC and M&M Finance.

(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)