F&O: Bears shift Nifty range to 14,200-14,000 zone; VIX rises

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F&O: Bears shift Nifty range to 14,200-14,000 zone; VIX rises


Nifty opened positive on Thursday, but failed to hold the 14,500 level and weakened just like it did in the last trading session to cascade down to the 14,264 level. The latter part of the session saw volatile moves; Nifty made a recovery towards 14,500 level, but that was shortlived and the bears took over again.

There was weakness across the market and Nifty finally settled the day with a loss of more than 200 points. Now, as long as it remains below 14,550 level, Nifty may weaken towards 14,200 and 14,000 levels, while on the upside hurdles are seen at 14,675 and 14,800 levels.

India VIX moved up 1.06% from 22.45 to 22.69 levels. The volatility index needs to cool down below 20 level for the bullish grip to continue and the market move to smoothen.

Since, it is the beginning of a new series, options data may scattered at different strike prices. On the options front, maximum Put Open Interest was seen at 14,000 level followed by 13,500, while maximum Call OI was seen at 15,000 followed by 16,000 levels. Options data suggested an immediate trading range between 14,000 and 14,800 levels.

Bank Nifty opened positive but failed to hold above 33,500 level as it drifted towards 32,400 level. However, the index witnessed a good short-covering bounce before the bears took it back towards 33,000 level. The index closed negative with around 300 points loss and formed a bearish candle on the daily chart. As long as it remains below 33,500 level, the index can see more weakness and head towards 32,500 and 32,000 levels, while on the upside hurdles are seen at 33,500 and 34,000 levels.

Nifty futures closed negative with a loss of 1.59% at 14,324 level. Among specific stocks, the trade setup looked bullish in SAIL, Tata Steel,

, ICICI Bank, MFSL and Dr Reddy’s but weak in ZEEL, PNB, Escorts, IOC, Housing, Maruti, Glenmark, Manappuram, Coal India, Sun TV, Bharti Airtel, , Indus Tower, Hero MotoCorp, PVR, RIL, RBL Bank and Bajaj Finance.

(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)



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