Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened positive and moved in a zig zag fashion throughout the day. It remained in a narrow range in the second half of the day and finally closed with gains of around 36 points. Any small declines were converted into buying opportunity and it sustained at higher zones. It formed a Bullish candle on daily scale and gave the highest daily close of the last 112 sessions

◆ Now it has to hold above 18550 zones, for an up move towards 18750 and 18888 zones while on the downside support exists at 18550 and 18442 zones

◆ India VIX was down by 2.36% from 12.29 to 12.01 levels. Volatility was down thus giving some comfort to the bulls to buy at any small decline at record high index levels

◆ Since it’s the beginning of the new series, Option data is scattered at various far strikes in monthly series. On weekly front, Maximum Call OI is at 18800 then 18700 strike while Maximum Put OI is at 18300 then 18600 strike. Minor Call writing is seen at 18850 then 18650 strike while Put writing is seen at 18600 then 18650 strike. Option data suggests a broader trading range in between 18400 to 18800 zones while an immediate trading range in between 18500 to 18750 zones

◆ Bank Nifty opened slightly negative and bulls were seen in action in the first tick and then later touched a new all-time high of 44498 levels. It was followed by a small decline and then recovered in the next half of the session. It respected its previous day’s low levels and closed above 44400 zones with gains of around 120 points. It formed a Bullish candle on daily scale and gave the highest ever close

◆ Now it has to continue to hold above 44144 zones for an up move towards 44750 then new life high of 45000 zones while on the downside support exists at 44144 then 44000 zones

◆ Bullish setup in Auropharma, RBL Bank, PFC, Rec Ltd, AB Capital, Ramco Cement, IDFC, JK Cement, HAL, IDFC First Bank, Indigo, Hindcopper, HDFC Life, Berger Paint, Indhotel, Poly Cab, Trent, DalBharat, Bandhan Bank, Bajfinance, Cumminsind, Ultracemco, Axis Bank and Asian Paint

◆ Bearish setup in Hindalco, SAIL, Tatachem, IEX and BPCL