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F&O: Nifty trading range shifts to 14,800-15,700 zone; VIX cools 6%

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F&O: Nifty trading range shifts to 14,800-15,700 zone; VIX cools 6%

Nifty opened with a gap up above the 15,000 mark and witnessed sustained buying interest throughout Wednesday’s session to rise towards the 15,273 mark. The entire market witnessed positive momentum with the bulls holding complete dominance and the session concluding with a decent gain of around 320 points. It formed a strong bullish candle with a lower shadow on the daily scale, which indicated that the bulls are back on track to head towards a new lifetime high. It continued to form higher lows for the third trading session and supports shifted higher gradually. Now, it has to hold above 15,150 level to extend its move towards 15,400 and 15,500 levels, while on the downside immediate support exists at 15,000 and then 14,900 levels.

India VIX fell 6.40% from 23.60 to 22.09 levels. The VIX is falling for last three sessions and quoted at the lowest levels of last seven sessions. The cooling down of the VIX from the highs can provide stability to the market. Now it needs to hold below the 21-20 zone for a strong bullish grip.

On the options front, maximum Put open interest was seen at 14,000 level followed by 13,500, while maximum Call OI was at strike price 16,000 followed by 15,500. Call writing was seen at strike prices 15,700 and 16,100 while there was Put writing at 15,000 and then 15,100 levels. Options data suggested a wider trading range between 14,800 and 15,700 level, while the immediate range was seen between 15,000 and 15,400 levels.

Bank Nifty opened with a gap up and escalated throughout the session. Banking stocks surged and pulled the index above 36,450 level and it settled the day with a gain of around 950 points. The index formed a bullish candle on the daily scale and continued to form higher lows for three sessions. Now, it has to hold above 36,000 level to witness a bounce towards 37,000 and the 37,250 levels, while on the downside, support exists at 36,000 and then 35,500 levels.

Nifty futures closed positive at 15,299 level with a gain of 2.29%. Among specific stocks, the trade setup looked bullish in Indiabulls Housing Finance, L&T Finance,

, Tata Chemicals, IndiGo, Tata Steel, RIL, , UPL, Cummins India, IDFC First Bank, REC, Torrent Power, PEL, Hindalco, JSW Steel, PFC, , MFSL and Infosys, but weak in Sun TV, Bajaj Auto, Hero MotoCorp and Apollo Hospital.

(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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