Nifty50 on Thursday opened with a gap up and the bulls cheered the index to a new lifetime high of 18,350 level yet again. Buying interest was seen throughout the day, and Nifty closed with a gain of around 180 points. It formed a bullish candle on the daily scale and has been forming higher lows since the last three session.
On the weekly time frame, Nifty saw a range breakout and has been forming higher lows from the past 11 weeks in a row. Now it has to hold above the 18,250 level to extend its move towards the 18,500 level, whereas on the downside support is seen at 18,050 and 17,947 levels.
India VIX fell 2.07 per cent from 16.10 to 15.76 level. The overall comparative lower VIX suggests the bulls are holding a tight grip on the market. Now VIX needs to cool down below the 15-14 zone to continue the smooth ride.
On the options front, maximum Put Open Interest was seen at the 18,000 level followed by 17,500 level, while maximum Call OI stood at 18,500 followed by 19,000 levels. Minor call writing was seen at the 18,800 and 18,600 levels, while there was meaningful Put writing at 18,000 and 18,300 levels. Options data suggested an immediate trading range between 18,000 and 18,500 levels.
Bank Nifty opened flattish and remained consolidative for first half of the day. It shot up in the second half and saw a price breakout on the daily timeframe. The bulls pulled the banking index to its all-time high level at 39,375, where it closed with a huge gain of around 700 points. It formed a strong bullish candle on the daily scale. It has been forming higher lows since the last nine sessions in a row. It formed a bullish candle on the weekly timeframe chart and came out of its consolidation on the weekly timeframe. It has been forming higher lows for seven weeks in a row. Now it has to hold above the 39,000 level to witness a bounce towards 39,800 and 40,000 levels, while on the downside major support was seen at 38,800 and 38,500 levels.
Nifty futures closed positive with a gain of 1.02 per cent at 18,358 level. Among specific stocks, the trade setup looked bullish in IRCTC, Adani Ports, Wipro, Adani Ent, Grasim, Havells, PFC, Havells, Can Bank, HDFC Bank, Naukri,
National Aluminium Company, ITC, PowerGrid, Divis Labs, L&TFH, IndusInd Bank, Bata India, ICICI Bank, ACC and LT but weak in Coal India, Metropolis, Lalpath Labs, Lupin, Concor, IGL, Biocon and Petronet.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations.)