F&O: Higher low & highest daily close in 10 sessions hold out hope for Nifty

Nifty opened positive on Monday, but moved in a narrow range of 55 points throughout the day. It remained at its higher band near its resistance levels and closed with a gain of around 120 points. The index saw the highest daily close in the last 10 sessions as supports gradually shifted higher. The index formed a small-bodied bullish candle on the daily scale and formed a higher low for the third session. Now, it has to hold above 15,850 level to witness a bounce towards 15,962 and 16,000 levels while on the downside support exists at 15,750 and 15,700 levels.

India VIX remained flattish at 12.80 level after seeing a decline in last two sessions. A decline in volatility has again given a grip to the bulls but now VIX has to cool down below 12 zone to provide more comfort.

On the Options front, maximum Put Open Interest stood at 15,000 level followed by 15,800 while maximum Call OI was seen at 16,000 followed by 15,800 levels. Minor Call writing was seen at 15,900 and then 16,000 while there was Put writing at 15,900 and then 15,800 levels. Options data suggested a broader trading range between 15,600 and 16,200 levels, while an immediate trading range is seen between 15,800 and 16,000 levels.

Bank Nifty opened positive. While it moved in a consolidative manner throughout the day, the last hour saw some weakness. Banking stocks continued to move in a lacklustre way and settled the day with a gain of around 130 points. It formed a bearish candle on daily chart, but negated the formation of lower highs of the last three sessions. Now, it has to hold above 34,750 level to move up towards 35,000 and 35,250 levels, while on the downside, support exists at 34,500 and 34,350 levels.

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Nifty futures closed positive with a gain of 0.84 per cent at 15,910 level. Among specific stocks, the trade setup looked bullish in PEL, Concor, Tata Power,

, DLF, SRF, Vedanta, Bata India, REC, Titan, PFC, Grasim, Ambuja Cement, , TCS, PVR, Infosys and Mindtree but weak in UPL, , Exide India, and .

(Chandan Taparia is a 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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