Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened gap up by 66 points near key level of 18666 marks and kept moving in the northward direction throughout the day. It held on to its higher zones with some consolidation in the first half of the session followed by a sharp rally in the next half of the day. It touched intraday high of 18738 zones and closed strongly near its day’s high with gains of around 130 points. It formed a Bullish candle on daily scale with longer lower shadow indicating support based buying at any minor dip. Index has given a range breakout on daily frame and gave the second highest ever close

◆ Now it has to continue to hold above 18666 zones to witness an up move towards 18800 and 18888 zones while on the downside support exists at 18636 and 18580 zones

◆ India VIX was up by 0.55% from 11.38 to 11.44 levels. Volatility sunk below 10 zones during the day but finally closed a tad bit higher but overall comforted the bull for the fresh leg of rally in the index

◆ On option front, weekly maximum Call OI is at 18800 then 18700 strike while maximum Put OI is at 18600 then 18500 strike. Call writing is seen at 18850 then 18900 strike while Put writing is seen at 18700 then 18650 strike. Option data suggests a broader trading range in between 18450 to 18900 zones while an immediate trading range in between 18600 to 18800 zones

◆ Bank Nifty opened on a positive note but failed to move above 44350 zones and gradually drifted towards its crucial 44144 level in the first half of the session. However some recovery was seen from lower levels in the last hour of the session and it formed a small bodied candle on daily scale with long lower shadow. It relatively underperformed the broader market and remained consolidative in narrow range of 200 points

◆ Now it has to continue to hold above 44144 zones for an up move towards 44500 then 44750 zones while on the downside support exists at 44044 and 43750 zones

◆ Bullish setup in Hindpetro, Glenmark, Canfin Homes, UBL, Tataconsum, Britannia, BPCL, Nestleind, Piind, Jswsteel, Tatacomm, Tatasteel, Tatamotors, HAL, ABB, Heromotoco, Powergrid, IOC, LT, Siemens, Cholafin, Apollo Hospital, Escorts, IRCTC, Bata India and SRF

◆ Bearish setup in Ibulhsgfin and Zydus Life