Nifty index opened with a gap up of nearly 250 points and remained confined within its first hour candle range for most of the session. With India VIX staying elevated, the index witnessed volatile swings on both sides through the day, though the overall bias remained slightly positive. The index struggled to sustain above the 24,300 zone but still managed to close the day with gains of around 230 points. On the daily chart, Nifty formed a doji candle with a longer lower shadow, indicating that buyers are active at lower levels. Notably, the index has recovered nearly 600 points over the last two sessions, reflecting a steady bounce from recent lows. Now it has to hold above 24,200 zones for a bounce towards 24,444 then 24,600 levels while a hold below the same could see some weakness towards 24,000 then 23,800 zones.
On option front, Maximum Call OI is at 25,000 then 24,500 strike while Maximum Put OI is at 24,000 then 23,500 strike. Call writing is seen at 25,000 then 24,300 strike while Put writing is seen at 24,200 then 24,000 strike. Option data suggests a broader trading range in between 23,800 to 24,800 zones while an immediate range between 24,000 to 24,500 levels.
Bank Nifty index opened gap up by more than 500 points and gradually extended the momentum towards 57,100 zones at latter part of the session. It formed a small bullish candle on daily scale as some buying interest is visible at lower zones. Rate sensitive Index also negated the formation of lower highs after few sessions but still hovering below its 200 DEMA as multiple hurdles are intact at higher levels. Now it has to hold above 56,750 zones for a bounce towards 57,250 then 57,500 levels while a hold below the same could see some weakness towards 56,500 then 56,250 zones.
Buy Aurobindo Pharma | CMP: ₹1,286 | Stop-loss: ₹1,240 | Target: ₹1,375
Stock has broken out from a consolidation zone with higher than average traded volumes and a strong bullish candle on the daily scale. The MACD indicator is rising which confirms the bullish momentum.
Buy ABB India | CMP: ₹6,224 | Stop-loss: ₹6,040 | Target: ₹6,600
Stock has formed a bullish “Pole & Flag” pattern suggesting continuation of the uptrend. It is respecting its 20 DEMA support zones with slight dips being bought into. The ADX line is rising which confirms the strength of the uptrend.
Buy Bandhan Bank | CMP: ₹182 | Stop-loss: ₹177 | Target: ₹195
The Stock is retesting its breakout on the daily scale and taken support at its 20 DEMA zones. The RSI momentum indicator is rising which confirms the bullish momentum.
(Disclaimer: This article is by Chandan Taparia, head derivatives & technicals, wealth management, Motilal Oswal Financial Services. Views expressed are his own.)
