market analysis: F&O: Nifty forms higher highs, crosses recent swing high in hope for the bulls
The index settled the day with a gain of around 170 points and formed a bullish candle with a long lower shadow, which signalled buying on declines. Now, it has to hold above 14,800 level to witness a bounce towards 15,000 and 15,100 levels, while on the downside support exists at 14,700 and 14,600 levels.
India VIX fell 3.16% from 20.64 to 19.98 levels. The VIX needs to cool down below 20 level for the bullish grip to continue and the market move to become smoother.
On the options front, maximum Put Open Interest was seen at 14,000 level followed by 14,500, while maximum Call OI was seen at 15,000 followed by 16,000 levels. There was Call writing at strike prices 15,000 and 15,100 and Put writing at 14,500 and 14,200 levels. Option data suggested a wider trading range between 14,500 and 15,200 levels.
Bank Nifty opened positive and moved in a range in the first half of the session, which was followed by a swift recovery in the latter part. The index closed the session with decent gain of around 550 points near the 33,850 mark, which signalled that the bulls are back in the banking stocks. The index formed a bullish candle on the daily scale with a long lower shadow and an Inside Bar on the weekly timeframe chart. Now it has to continue to hold above 33,500 level to witness a bounce towards 34,500 and 35,000 levels, while on the downside support exists at 33,333 and 33,000 levels.
Nifty futures closed positive at 14,942 level with a gain of 1.29 per cent. Among specific stocks, the trade setup looked bullish in JSW Steel, Adani Enterprise,
, Hindalco, SRF, , SAIL, , Shriram Transport, Tata Chemicals, IGL, Ramco Cement, UltraTech Cement, Sun Pharma, Tata Consumers and but weak in IndiGo and Escorts.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
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