F&O: Options suggest Nifty range at 14,300-15,000; VIX remains high

Nifty on Tuesday opened on a positive note on the back of favourable global cues and continued the bullish momentum of the previous session. Sensex again reclaimed the 50,000 mark in initial hour of trade. Nifty moved above the 14,700 mark, even as Nifty futures registered a new all-time high.

However, marginal profit booking emerged higher levels and the index concluded the session a tad below 14,650 level with a gain of 2.57% over its previous close. The index formed a bullish candle for the second consecutive session. Buying interest is there across the Street, as all sectoral indices are trading in the green. Now, Nifty has to continue to hold above 14,500 level to continue its bullish momentum towards 14,850 and then 15,000 levels, while immediate support can be seen around 14,500 and then 14,300 levels.

India VIX remained flattish and closed at 23.34 level. Now, the VIX needs to hold below 20 zone for continuation of the ongoing momentum.

On the options front, noticeable Put writing was witnessed at strike prices 14,000 and 14,600. While some Call writing was seen at 15,000 and 14,700 levels, there was unwinding at strike prices 14,000 and 14,500. Maximum Put open interest was seen at 14,000 followed by 13,500 level, while maximum Call OI was at 15,000 followed by 14,500 levels. Options data suggested a wider trading range between 14,300 and 15,000 levels.

Bank Nifty opened with a gap up and continued its positive momentum throughout the day. It registered a new all-time of 34,652 and eventually concluded the session above 34,250 level, with a gain of 3.56%. The banking index is sustaining well above its range breakout and formed a bullish candle for the second consecutive session. It is forming higher tops and bottoms for the last three sessions along with positive placement of the mechanical indicator, RSI. Now it has to hold the 33,500 zone to witness a bounce towards 35,000 level, while on the downside support exists at 33,500 and then 33,000 levels.

Nifty futures closed positive at 14,711 level with 2.51% gain. In specific stocks, the trade setup looked bullish in

, , Ashok Leyland, , ZEE, UltraTech Cement, , Siemens, Bharti Airtel, TVS Motor, Voltas, PEL and Escorts but weak in SAIL, ICICI Prudential Life, HDFC Life, Tata Consumer, Bajaj Finance and HUL.

(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)