Pre-Market Derivatives and Technical Set-up
● Nifty opened positive and remained volatile in broader trading range for most part of the session. It fell in the initial half but recovered well in the second half of the session. Index witnessed a tussle between the bulls and bears but it managed to close positive with gains of 87 points. It formed a small bodied Bullish Candle on daily scale but got stuck in between 12730 to 12950 zones from the last five trading sessions. However major weekly structure is positive and continues moving northward with lower pace of buying interest
● Now it has to continue to hold above 12750 zones to witness an up move towards 13000 zones while a hold below the same could see weakness towards 12700 then 12650 zones
● India VIX was marginally up by 0.24% from 19.57 to 19.61 levels. Volatility has cooled down but needs to continue at lower zones to ride the momentum with higher market base
● On option front, Maximum Put OI is at 12000 followed by 12500 strike while maximum Call OI is at 13000 followed by 13500 strike. We have seen marginal Call writing in 13200 and 12800 strike while Put writing is seen at 12800 then 12500 strike. Option data suggests a wider trading range in between 12500 to 13000 zones
● Bank Nifty positive but saw selling pressure in the first half of the day. However a smart recovery was seen thereafter and the day ended green with gains of 333 points. It formed a Bullish candle on daily and weekly scale. It has been consolidating in between 28500 to 29800 zones from last four trading sessions and requires a follow up action to commence the next leg of rally
● Now it needs to hold above 29000 zones to witness an up move towards 29500 then 29800 level while on the downside support exists at 28750 then 28500 zones
● Bullish setup in Bajajfinserv, Titan, Jublfood, Gail, UBL, Kotak Bank, Bhartiartl, MRF, Nestle, Grasim, Mothersumi, Hdfc Bank and ITC
● Bearish setup in PVR, Reliance, Sunpharma and BPCL
Technical & Derivatives Research, Motilal Oswal