● Nifty index opened the week on a flat note and fell by around 200 points from opening levels. However, index remained in sideways direction in remaining part of the session and formed a small negative candle on daily chart. Index moved with the trading territory of Thursday’s session and thus formed an inside bar pattern on daily scale, indicating indecisiveness among the market participants
● Despite the negative close of benchmark index, market breadth remained marginally in favour of the advancing counters. Index is hovering around 20 DEMA from last two sessions and now 38.20% retracement of the entire fall from 12430 to 7511, which is placed around 9400, would act as key hurdle. On the flipside, immediate support is inching higher to 8888 and then 8650-8555 zones.
● On monthly options front, maximum Call OI is at 9000 and then 10000 strike while max Put OI is at 8000 then 7500 strike. We haven’t seen any noticeable activity in Call and Put Options with minor Call & Put writing seen at 9000 strike. Option data indicates an immediate trading range in between 8500 to 9500 zones.
● India VIX moved up by 3.45% at 51.45 levels. Currently, VIX is hovering around 50% retracement level of the recent rally
● Bank Nifty underperformed the benchmark index and formed a negative candle on daily chart. It continued to form inside Bar pattern for second consecutive session, which indicates possibility of a trending move in coming day (in the direction of breakout). However, Bank Nifty is yet trading below its recent swing low of 21462 and 20 DEMA
● Going forward, immediate resistance for Bank Nifty is placed at 20300 then 21300-21500 zones while support can be seen around 19100 and 18500 levels
● Long build-up in Glenmark, SRF, Dr Reddys Lab, Ambuja Cement and Lupin
● Shorts in Chola Fin, Bajaj Finance, ZEEL, Torrent Pharma, Godrej CP
