Nifty opened with a gap up and made a new lifetime high of 15,835 during the initial tick on Friday. However, It remained rangebound for most part of the session and closed with a gain of 60 points.
The index formed a Doji candle on the daily scale and a Hammer candle on the weekly timeframe chart, which indicated that every decline is getting bought into. The index continues to form higher highs and lows on the weekly scale for the past five weeks. Now, it has to hold above 15,750 level to witness a bounce towards 15,900 and 16,000 levels, while on the downside, support exists at 15,650 and 15,550 levels.
India VIX fell 5.98 per cent from 15 to 14.10 levels. India VIX is gradually falling near to its lowest level of last 17 months since February 2020. A falling VIX may continue to keep the market favourable for a buy-on-decline strategy.
On the options front, maximum Put Open Interest was seen at 15,000 level followed by 15,500 while maximum Call OI was seen at 16,000 followed by 16,100 levels. Call writing was seen at strike prices 15,800 and 16,100 while there was Put writing at 15,500 and then 15709 levels. Options data suggested an immediate trading range between 15,500 and 16,000 levels.
Bank Nifty opened positive but moved in the southward direction for the first half of the session. The latter part of the day saw rangebound movement in the market and finally the index closed with a loss of around 80 points. It formed a bearish candle on the daily as well as on weekly scales, as supply pressure emerged at higher levels. Now the index has to hold above 35,000 level to witness a bounce towards 35,500 and 35,750 levels, while on the downside support exists at 34,750 and 34,500 levels.
Nifty futures closed positive at 15,821 level with a gain of 0.44%. Among specific stocks, the trade setup looked bullish in SAIL,
, Tata Steel, Coal India, Jindal Steel, , JSW Steel, MGL, Dr Reddy’s, Glenmark, , TCS and Infosys but weak in Concor, Canara Bank, , Voltas and L&T.