● Nifty Index opened gap up by 150 points and had a volatile ride throughout the entire trading session. In the early session it corrected by more than 200 points from 11000 levels but decline was bought and it managed to gain more than 300 points from intraday lows. It erased the losses of last three trading sessions and closed above its psychological 11000 levels. It negated its lower highs-lower lows formation after five trading sessions and formed a Hammer Pattern on daily scale followed by a Piercing pattern which implies bullish bias
● Now it has to continue to hold above 10950-11000 zones to witness an up move towards 11111 then 11180 levels while supports are seen at 11000 then 10929
● Max Put OI is at 11000 then 10800 strike while Max Call OI is at 11000 then 11200 strike. We have seen meaningful Put writing at 10900 then 11000 strike while minor Call writing is seen at 11200 then 11100 strike. Option data suggests a trading range between 10900 to 11200 zones
● India VIX fell down by 4.01% at 16.65
● Bank Nifty opened gap up by 700 points but drifted sharply towards 26900 zones in first hour of the trading session. However it recovered sharply from lower zones and gained nearly 1000 points to close near 28000 zones. It formed a Hammer Candle on daily scale with long lower shadow as declined is being bought into and negated its lower highs - lower lows formation after five trading sessions
● Now it has to hold above 27750 zones to witness an up move towards 28388 then 28500 zones while supports are seen at 27500 then 27350 levels
● Longs in Bajaj Finserv, Divis Lab, Gail and BEL
● Shorts in Motherson Sumi, Power Grid and Biocon
