Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened positive and remained choppy for first half of the session. It was finding tough to surpass any immediate hurdle and bears were sliding the index lower to breach its previous day’s low levels in the last hour of the day to touch 18464 marks. It has been witnessing profit booking from last two sessions and closed with losses of around 50 points. It formed a Bearish Belt Hold candle on daily scale and has been forming lower lows from the last three sessions

◆ Now it has to find support near 18442 zones, then only we can witness a bounce towards 18580 and 18666 zones while a hold below 18442 could open the further decline towards 18333 and 18181 zones

◆ India VIX was down by 3.11% from 11.97 to 11.59 levels. Volatility cooled off and thus in turn created swings within a smaller range in the indices making it choppy for most part of the day

◆ On option front, weekly Maximum Call OI is at 18600 then 18500 strike while Maximum Put OI is at 18500 then 18400 strike. Call writing is seen at 18600 then 18500 strike while Put writing is seen at 18500 then 18300 strike. Option data suggests a broader trading range in between 18200 to 18800 zones while an immediate trading range in between 18300 to 18700 zones

◆ Bank Nifty opened on a flattish note and remained consolidative in a narrow range of 200 points between 43950 to 44150 zones in the first half of the session. However it failed to hold its key level of 44144 marks and corrected sharply towards 43700 zones in the last hour of the session. It formed a Bearish Belt Hold Candle on daily scale as selling pressure was seen at higher zones and index ended with losses of around 340 points

◆ Now till it holds below 44044 zones some weakness could be seen towards 43500 then 43333 levels while on the upside hurdle is seen at 44144 then 44250 zones

◆ Bullish setup in Apollo Hospital, India Cement, RBL Bank, M&M Fin, Naukri, Intellect, Canfin Homes, Marico, Glenmark, Tatacomm, Havells, Indhotel, Bajaj Auto, Pidilitind, Tatamotors, Poly Cab, Asian Paint, Sunpharma, IDFC First Bank and Nestle Ind 

◆ Bearish setup in IGL, Navinfluor, SRF, Jindalstel, ICICI Bank, Petronet and GNFC