Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened gap up above 17700 zones and after an initial dip in the first hour of the session, it was followed by consolidation and a rise in the second half. Bulls showed their strength and took the index above to 17750 zones. It managed to close on a strong note near it’s day’s high after the consolidation of the last three sessions and closed with gains of around 120 points. It formed a Bullish candle on daily frame with longer lower shadow indicating support based buying

◆ Now it needs to hold above 17717 zones to witness an up move towards 17777 and 17850 zones while on the downside supports are placed at 17620 and 17550 marks

◆ India VIX was up by 0.32% from 11.63 to 11.66 levels. Volatility spiked above 12 zones but later sunk and has overall has dried up to consistently hover at its lower zones

◆ On Option front, Maximum Call OI is at 18000 then 17800 strike while Maximum Put OI is at 17700 then 17600 strike. Minor Call writing is seen at 17800 then 17900 strike while Put writing is seen at 17700 then 17600 strike. Option data suggests a shift in trading range in between 17500 to 18000 zones while an immediate trading range in between 17600 to 17900 zones

◆ Bank Nifty opened on a positive note with gains of 300 points but remained consolidative in a narrow range of 150 points between 42300 to 42450 zones in the first half of the session. It witnessed good momentum in latter part of the session and extended the move towards 42700 levels. It formed a Bullish candle on daily scale as strong momentum was seen in banking space and it ended the day with gains of nearly 520 points. It gave a Symmetrical Triangle breakout on daily scale and has relatively outperformed the broader market

◆ Now it has to hold above 42500 zones for an up move towards 43000 then 43200 levels while on the downside support shift higher 42250 then 42000 zones

◆ Bullish setup in Tataconsum, IDFC First Bank, OFSS, L&TFH, Can Fin Homes, Can Bank, Colpal, Bank Baroda, SBIN, Titan, Axis Bank, Rec Ltd, ICICI Bank, IDFC, Lupin, Nestle Ind, HDFC, Poly Cab, SRF and Bajaj Auto

◆ Bearish setup in Lauras Labs, ZEEL, PVR, Voltas, Cipla, DIXON, Maruti and Bhartiartl