Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened gap up but witnessed selling pressure right from the initial tick. It witnessed swings within a small range in the first half of the session followed by bear’s grip in the next half. It breached its previous day’s lower zones and drifted towards 18100 levels. It is facing pressure at higher zones with third consecutive Bearish candle and finally closed with losses of around 50 points

◆ Now till it holds below 18181 zones, some more profit booking could be seen towards 18081 and 18018 zones while on the upside hurdle exists at 18218 and 18333 marks

◆ India VIX was down by 2.33% from 13.10 to 12.79 levels. Volatility had sunk in the initial tick but later spiked and caused swings in the market

◆ On Option front, monthly Maximum Call OI is at 18200 then 18300 strike while Maximum Put OI is at 18200 then 18000 strike. Call writing is seen at 18200 then 18300 strike while minor Put writing is seen at 18100 then 18000 strike. Option data suggests a broader trading range in between 17900 to 18400 zones while an immediate trading range in between 18000 to 18300 zones

◆ Bank Nifty opened gap up by 300 points above 44000 zones but failed to hold its opening gains and remained consolidative in narrow range of 200 points in the first half of the session in between 43850 to 44050 levels. However it breached its hourly support of 43800 zones and drifted swiftly towards 43675 levels and remained volatile to close near 43750 zones. It formed a Bearish candle on daily scale as selling pressure was seen at higher zones

◆ Now till it holds below 44000 zones, bounce could be sold for some weakness towards 43500 then 43333 levels while on the upside hurdle is seen at 44000 then 44144 marks

◆ Bullish setup in Cholafin, Au Bank, Ramco Cement, Bhartiartl, Berger Paint, Pidilitind and Axis Bank

◆ Bearish setup in Metropolis, Gail, Granules, Suntv, Divislabs, Indus Tower, Can Bank, ACC, Shree Cement, RBL Bank, Hindpetro, Alkem, Rain, Bharatforg, SRF, Jindalstel, NMDC, Powergrid, Drreddy and Grasim