Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened positive but failed to hold above 18620 zones and drifted lower for the first half of the session to touch 18530 zones. It recovered in the next half of the session and managed to close near 18600 with gains of around 5 points. It moved in a rather staggered way for most part of the day followed by a swift recovery in the last hour. It formed a Doji sort of candle on daily scale with longer lower shadow indicating support based buying on declines

◆ Now it has to continue to hold above 18580 zones to witness an up move towards 18666 and 18750 zones while on the downside support exists at 18480 and 18442 zones

◆ India VIX was up by 2.15% from 11.12 to 11.38 levels. Volatility negated its lower highs formation on daily frame but overall lower levels is keeping the index in a smaller range

◆ On option front, weekly maximum Call OI is at 18600 then 18800 strike while maximum Put OI is at 18500 then 18600 strike. Call writing is seen at 18750 then 18800 strike while Put writing is seen at 18550 then 18400 strike. Option data suggests a broader trading range in between 18300 to 18800 zones while an immediate trading range in between 18450 to 18700 zones

◆ Bank Nifty opened on a flattish note but failed to hold above 44200 and gradually drifted towards 44000 zones in the first half of the session. However some recovery seen from lower levels in the last hour of the session and it formed a Doji sort of candle on daily scale as buying interest was seen at lower zones. Overall it remained consolidative in narrow range of 200 points as selective private banks continue to hold the Index while few public banks remained lacklustre

◆ Now it has to continue to hold above 44044 for an up move towards 44500 then 44750 zones while on the downside support exists at 44000 and 43750 zones

◆ Bullish setup in Ambujacem, Oberoirlty, HAL, Ultracemco, ACC, Glenmark, TVS Motor, IDFC, BEL, Tatacomm, Axis Bank, Tatamotors, Maruti, Cumminsind, Grasim, M&M, Bajfinance and Deepakntr 

◆ Bearish setup in IEX, Mphasis, Coforge, Voltas, LTTS, OFSS, INFY, Techm, TCS, ONGC and Hcltech