Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened positive and fell steeply in the first half of the session to touch intraday low of 18060 and was followed by recovery throughout the day. Buying interest was ignited at 18081 zones and it touched high of 18218 zones to finally close with gains of around 70 points. It formed a Bullish hammer on daily scale with longer lower shadow indicating buying at support zones. It formed a Bearish candle on weekly frame but has been forming higher highs from the last eight weeks which suggests supports are gradually shifting higher

◆ Now it has to hold above 18181 zones, for an up move towards 18333 and 18442 zones while on the downside supports exist at 18081 and 18018 zones

◆ India VIX was down by 3.91% from 12.79 to 12.30 levels. Volatility sunk during the day and paved way for the bulls in the market at support zones

◆ On Option front, monthly Maximum Call OI is at 18200 then 18500 strike while Maximum Put OI is at 18200 then 18000 strike. Call writing is seen at 18450 then 18400 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 18050 to 18350 zones

◆ Bank Nifty opened gap up by 150 points near 43950 zones but failed to hold its opening gains and drifted swiftly towards 43500 zones in the initial hour of the session. Later on it remained consolidative in narrow range of 100 points but recovered its intraday losses and extended its momentum towards 44000 zones. It formed a Bullish Pin Bar candle with long lower shadow on daily scale which suggests buying is visible at lower zones but facing multiple hurdle near 44050 zones from the past few sessions. On weekly structure, it formed a small bullish candle and higher highs - higher lows structure is intact from the past eight weeks

◆ Now it has to hold above 43750 zones for an up move towards 44144 then 44250 zones while on the downside support is seen at 43500 then 43333 levels

◆ Bullish setup in DLF, Tata Motors, Adani Ent, Adani Ports, Bsoft, Coforge, Indhotel, Infy, Mphasis, LTIM and Ramco Cement

◆ Bearish setup in ABFRL, AB Capital, Astral, Auropharma, Bandhan Bank, Britannia, Divis Labs, Siemens and Zyduslife