Nifty failed to surpass June 27 high and witnessed some profit booking on June 28 as it drifted towards 11,777. It negated the formation of higher highs, higher lows after two trading sessions and formed a bearish candle on the daily scale while Bullish Harami on a weekly scale.
Price setup suggests a tug of war between bulls and bear. Now it has to hold above 11,761 to witness an up move towards 11,888, then 11,929; while a hold below the same could drag it towards 11,720 then major support of 11,650.
India VIX moved up 2.33 percent from 14.61 to 14.95. For Nifty options, maximum Put OI was at 11,500 followed by 11,000 strike, while maximum Call OI was at 12,000 followed by 12,500 strike. We have seen Put writing at 11,500 followed by 11,300 strike, while Call writing has been seen at 12,000 followed by 12,300 strike. Options data suggests a wider trading range of 11,650-12,250.
Bank Nifty failed to hold above 31,313 but consolidated in a narrow range of 200 points for the entire trading session. It formed a bearish candle on daily scale and bullish candle on the weekly scale, which suggests follow up is missing at higher levels while dips are being bought.
Now, it has to continue to hold above 31,000 to extend its move towards 31,500 while on the downside, major support exists at 30,600-30,500. It has recently surpassed its falling supply trend line and a small follow up can lead it to lifetime high territory towards 31,783.
Stock specific, we are positive on Bajaj Finance, Titan, Siemens, ICICI Bank, SBIN, Muthoot Finance, Bata India, Bank of Baroda, Canara Bank, Axis Bank, Federal Bank, ICICI Pru, etc. A weakness will persist in Exide Industries, Amar Raja, Jubilant Foodworks and Shriram Transport.
The Author is Derivatives & Technical Analyst at Motilal Oswal.
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