● Nifty index opened on a negative note but moved up by more than 200 points from opening levels and concluded the session around 9000 mark. It formed a small green body candle on daily chart. Market breadth remained in favour of the advancing counters for fourth consecutive session, which is a sign of relief for the bulls
• Nifty is currently moving around 50% retracement level of Wednesday’s fall, which is placed around 9042. Index is hovering around 20 DEMA from last four sessions and now if Nifty sustains below 8800 zones, then we may see a fall towards 8650 and then 8555 zone. While on the upside, resistance is placed at 9250 then 9400-9500 zones
● On monthly options front, Max Call OI is at 10000 and then 9000 strike while Max Put OI is at 8000 then 8500 strike. We haven’t seen any noticeable activity in Call and Put Options with minor Put writing at 8000 then 8500 strike. Option data indicates an immediate trading range in between 8500 to 9500 zones
● India VIX fell down by 7.32% at 46.10 levels. VIX is cooling down from higher levels, which may provide stability to the market
● Bank Nifty breached its losing streak of last two sessions and gained by 1.80%%. It opened with downside gap but witnessed buying interest from lower levels and moved towards 19500 zone. Eventually, it formed a bullish candle on daily chart. However, till the time it sustains below 20300, bears may have upper hand on the market
● At current juncture, immediate resistance for Bank Nifty is placed at 20300 then 21300-21500 zones while support can be seen around 18500 then 18000 levels. Traders are advised to remain light on positions as overall medium term chart structure is negative and bounces are getting sold-off
● Longs in Motherson Sumi, MFSL, Chola Fin, Balkrishna Inds and Jubl Food
● Shorts in TechM, PEL, Kotak Bank, Concor and Bharti Infratel
