Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened gap down and was followed by buying interest but it failed to surpass 18400 zones and slipped in the next half of the session. It cascaded down most part of the day and it closed with losses of around 60 points. It formed a long pin bar on daily scale with higher upper shadow indicating pressure at higher zones. It negated its higher highs - higher lows formation of the last two sessions

◆ Now it has to hold above 18281 zones, for a bounce towards 18400 and 18442 zones while on the downside supports exist at 18181 and 18081 zones

◆ India VIX was up by 4.07% from 12.60 to 13.11 levels. Volatility has been rising from the last three sessions and causing swings in the market

◆ On Option front, monthly maximum Call OI is at 18400 then 18500 strike while maximum Put OI is at 18300 then 18200 strike. Call writing is seen at 18400 then 18300 strike while Put writing is seen at 18200 then 18300 strike. Option data suggests an immediate trading range in between 18150 to 18400 zones

◆ Bank Nifty opened on a negative note but gradually recovered its intraday losses and extended its movement towards 44000 zones in the first half of the session. Later it failed to hold 44000 zones and drifted lower towards 43650 zones in the last hour of the session. Index has got stuck in between 43333 to 44144 zones from the past ten trading sessions and follow up is missing on either side. It has formed a small bearish candle on daily scale with upper shadow as selling pressure is seen at upper band of the range and it ended in negative territory below 43700 zones

◆ Now it has to hold above 43750 zones for a bounce towards 44144 then 44250 zones while a hold below the same could see some weakness towards 43500 then 43333 marks

◆ Bullish setup in Deepakntr, L&TFH, Syngene, Havells, Mcdowell, Apollo Tyre, Indusind Bank, Indhotel, Coal India, ITC, Heromotoco, TVS Motor, BEL, Maruti, IOC, AU Bank and Axis Bank

◆ Bearish setup in Cummisnind, India Cement, Jindalstel, Federal Bank, ZEEL, HDFC Bank, HDFC Ltd and Kotak Bank