Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened gap up by around 80 points but moved in a consolidative manner throughout the day. It respected support of 18580 zones but failed to move above 18640 zones and remained in a narrow range of 50 points. It formed a small bodied candle on daily scale and negated its lower highs formation of the last three sessions to close with gains of around 60 points

◆ Now it has to hold support of 18580 zones to witness an up move towards 18750 and 18888 zones while on the downside support exists at 18480 and 18442 zones

◆ India VIX was up by 0.16% from 11.12 to 11.13 levels. Volatility is marginally up but has been overall cooling off and thus in turn creating swings within a smaller range in the indices

◆ On option front, weekly maximum Call OI is at 18600 then 18700 strike while maximum Put OI is at 18500 then 18600 strike. Call writing is seen at 18700 then 18650 strike while Put writing is seen at 18500 then 18400 strike. Option data suggests a broader trading range in between 18300 to 18800 zones while an immediate trading range in between 18400 to 18700 zones

◆ Bank Nifty opened on a positive note near 44100 zones but remained consolidative in a narrow range of 100 points between 44150 to 44250 zones for most part of the trading session. It formed a Doji candle on daily scale as some profit booking was seen from higher zones in the last hour of the session and it closed at it opening zones. However it negated the formation of lower highs after four sessions to close with gains of around 160 points. It is holding well above its 20DEMA on daily scale and buy on dips stance likely to continue

◆ Now it has to continue to 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 HAL, M&M, BHEL, ICICI Pru, Axis Bank, BEL, Tatamotors, Grasim, Tatapower, LT, Deepakntr, Reliance, Maruti, Tatasteel, Indusind Bank, Cumminsind, SRF, Indigo and Glenmark

◆ Bearish setup in AU Bank, Manappuram, VEDL, MFSL, BPCL, MGL, TCS and Kotak Bank