*Pre-Market Derivatives and Technical Set-up*
● Nifty index continued to make higher highs and rallied towards 9600 levels. It formed a bullish candle on daily scale and managed to close well above its hurdle of 9400 zones which is 38.20% retracement level of the entire fall from 12430 to 7511 levels
● It gave a trendline breakout on intraday chart and now heading towards 50 EMA. Now till it holds above 9400 zones, we may see continuation in up move towards 9700 and even higher zones. While on the downside support is shifting higher to 9400 and then 9250 levels
● On monthly options front, Max Call OI is at 10000 then 9500 strike while Max Put OI is at 9000 then 9500 strike. We have seen Call Writing at 10000 then 9750 strike while meaningful Put Writing is seen at 9500 then 9400 strike. Option data indicates an immediate trading range in between 9400 to 9700 zones. Put writing at immediate strikes suggests continuation in positive stance even for some short covering move ahead of the monthly expiry day
● India VIX moved down by 4.30% at 33.84 levels and it has been cooling down from last six trading sessions. It has also falling from last four consecutive weeks which is providing some stability to bulls. Rising Put Call Ratio with falling Volatility suggests shift in the higher trading zones
● Bank Nifty managed to hold 20400-20500 zones and decline was bought for an up move towards 21350 zones. It formed a Bullish Candle and gave a breakout from symmetrical triangle pattern while set to surpass its horizontal supply trend line on daily scale
● Now, it has to hold above 21000 zones to witness a positive momentum towards 22000 - 22500 zone. At current juncture, immediate support is placed at 20500 then 20250 levels while resistance is placed at 21500 then 22000-22500 zones
● Longs in HDFC, HCL Tech, Hindalco, Apollo Tyre and Petronet
● Shorts in Hindustan Unilever, Axis Bank, Asian Paint, Dabur and Pidilite
● Stock specific positive setup seen in ICICI Pru, HDFC Bank, Bajaj Finance, Torntpower, Hcltech, TCS, ICICI Bank etc....
