F&O: Bullish candle & inside bar in Nifty chart give bulls an edge

Nifty opened positive on Thursday and moved upward from the opening tick, as the bulls were seen active on the index with the support at 15,700 level. The index moved in a consolidative manner in the second half and closed near the 15,800 mark with gains of around 100 points. It formed a bullish candle and an Inside Bar pattern on the daily scale, as it traded inside the trading range of the last session. 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 can be seen at 15,700 and 15,600 levels.

India VIX fell 1.71% from 15.36 to 15.09 levels. Lower volatility indicates an overall bullish market bias, but a small bounce in VIX can offer some volatile cues to the market.

Since it is beginning of a new series, options data lay scattered at different strike prices. On the options front, maximum Put OI was seen at 15,500 level followed by 15,000; while maximum Call OI was at 16,000 followed by 16,500 level. Call writing was seen at 16,000 and 16,500 levels, while there was Put writing at 15,000 and then 15,500 levels. Options data suggest a wider trading range between 15,400 and 16,200 levels while the immediate range is seen between 15,600 to 16,000 levels.

Bank Nifty opened positive and headed towards its previous day’s high of 34,935 level. Select banking stocks kept Bank Nifty in strength and it closed with a gain of around 250 points. It formed a bullish candle and an Inside Bar on the daily scale. 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 34,250 levels.

Nifty futures closed positive with a gain of 0.61% at 15,791 level. Among specific stocks, the trade setup looked bullish for Infosys, TCS, Mindtree, MFSL, Asian Paint, Maruti, BEL, ICICI Bank, Dabur, BajajFinserv, Hcltech, Ultracemco and Ramcocem but weak n Reliance, MGL, Apollotyre, Recltd, Petronet, Hindpetro, Exideind, IOC, Amaraja Battery and Lichsgfin.