The Nifty index opened with a gap up at 15,291 level on Tuesday, but witnessed pressure at higher zones and consolidated in a broader range to settle the day on a flattish note. The index has been forming higher highs and higher lows for the last three trading sessions. Technically, it formed a bearish candle with a long lower shadow on the daily chart.
Now, it has to hold above 15,150 level to witness an up move towards 15,300 and then lifetime high of 15,431-mark, while on the downside, support exists at 15,100 and 15,000 zones.
India VIX fell down by 1.50 per cent from 19.13 to 18.84 levels. India VIX needs to hold below the 20 zone to extend the bullish market momentum towards new lifetime territory.
On the option front, maximum Put Open Interest was seen at 15,000 level, followed by 14,500, while maximum Call OI was seen at 15,500 followed by 15,300 level. Call writing was seen at 15,300 and 15,350 levels, while Put writing was seen at 15,200 and 15,100 levels. Option data suggests a trading range between 15,000 and 15,400 zones.
Bank Nifty opened on a positive note, but could not cross its previous day’s highs and moved in a range throughout the day. Banking stocks underperformed the broader market and the index closed with losses of around 280 points. It formed a bearish candle on the daily scale and negated its higher highs and lows formation of the last two sessions. Now, it has to hold above the 34,500 level to witness an up move towards 35,000 and 35,250 levels, while on the downside, support exists at 34,250 and 34,000 levels.
On the stocks front, bullish setup was seen in Concor,
, Asian Paints, Titan, , , Page Industries, MFSL, BHEL, UBL, Indigo, Jubilant Food, TCS, HCL Tech and TechMahindra, while weakness was seen in Amara Raja Battery, Cummis, M&M Finance, , Havells, Coal India and Reliance.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)