Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened positive but failed to surpass immediate hurdle of 18580 zones and remained volatile in broader trading range in between 18480 to 18580 zones for most part of the day. It formed a small bodied Bearish candle and an inside bar on daily scale with longer lower shadow indicating support based buying is intact. It has been forming lower highs from the last three sessions and closed the day with gains of around 45 points. It formed a small bodied Bearish candle on weekly frame but has been forming higher highs from the last ten weeks

◆ Now it has to hold support of 18442 zones to witness an up move towards 18666 and 18750 zones while on the downside support exists at 18442 and 18333 zones

◆ India VIX was down by 4.09% from 11.59 to 11.12 levels. Volatility has been cooling off and thus in turn creating swings within a smaller range in the indices making it choppy for most part of the session

◆ 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 18800 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 positive note but failed to surpass 44044 marks and drifted towards 43800 zones in the first hour of the day. However it recovered from lower zones and extended its movement towards its opening level near 44088 zones. Later on it consolidated in a range of 200 points in between 43800 to 44020 zones and formed an Inside Bar on daily scale. It has been forming lower highs - lower lows on daily scale from the past three sessions but holding well above its 20DEMA. It formed a Bearish candle on weekly scale but structure of higher highs is intact from the last ten weeks

◆ Now it has to cross and hold above 44044 for an up move towards 44250 then 44500 zones while on the downside support exists at 43750 and 43500 zones

◆ Bullish setup in PFC, HAL, Hindalco, Heromotoco, Astral, Tatacomm, Apollo Hospital, DLF, Rec Ltd, Trent, Tatasteel, Poly Cab, TVS Motor, NMDC, Mphasis, Lauras Labs, Can Bank, M&M, Titan, Zydus Life, M&MFin, Sunpharma and Maruti

◆ Bearish setup in MGL, Gujgas, IGL, BPCL and Hindpetro