Nifty index opened flattish but managed to cross a landmark of 18,000 level and make a new all-time high at 18,041 on Monday. The bulls took the index at fresh highs and it closed with a gain of around 50 points. The index formed a bullish candle on the daily timeframe with a long upper shadow, as some profit booking emerged in the concluding hour. Now, Nifty has to hold above the 17,950 level for a bounce towards 18,100 and 18,200 levels while on the downside support is seen at 17,777 and 17,650 levels.
India VIX rose 2.78 per cent from 15.65 to 16.08 level. The rise in volatility indicates a volatile swing, but overall lower volatility has provided buying support to the broader market. Now, VIX needs to cool down below the 15-14 zone to ensure smooth ride of the market.
In Options data, maximum Put Open interest stood at 17,000 followed by 17,500 levels, while maximum Call OI was at 18,000 followed by 18,500. There was minor Call writing at strike prices 18,000 and 18,500 while Put writing was seen at 18,000 and 17,800 levels. Options data suggested a broader trading range between 17,400 and 18,200 levels and an immediate trading range between 17,700 and 18,200.
Bank Nifty opened positive and moved to its lifetime high of 38,495 level. It surpassed its previous supply zone at the 38,100 level and rose to close with a gain of more than 500 points. It formed a bullish candle on the daily scale and has been forming higher lows since the last six sessions. Now it has to hold above the 38,100 level to witness a bounce towards 38,500 and 38,800 levels while on the downside major support is seen at 37,700 and 37,500 levels.
Nifty futures closed positive with a gain of 0.43 per cent at 17,977 level. Among specific stocks, the trade setup looked bullish in IEX, Tata Motors, Tata Power, Torrent Power, MCX, ZEEL, NMDC, IndiGo, Bharat Forge, HDFC Bank, ITC, SBI, Maruti but weak in TCS, TechM, Britannia, L&T and Cipla.
(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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