● Nifty index kick-started the week on a positive note as it witnessed a sharp rally of more than 150 points. Bulls were aggressive from initial trades and continued to pull the benchmark indices higher as the day progressed. It witnessed sustained buying interest till the end of session and formed a Bullish Marubozu kind of candle on daily scale
● It witnessed a breakout after the consolidation of last sixteen trading sessions from Bullish Pennant pattern on daily chart, indicating resumption in bullish momentum in coming days. After the consolidation phase of last three weeks, index managed to close above its immediate hurdle of 12035 zones and in verge of making new all-time high
● Now, it has to continue to hold above psychological 12000 zones to extend its move towards 12103 then a fresh rally towards 12250 zones while on the downside support exists at 11920 then 11850 levels.
● On monthly options front, maximum Put OI is at 12000 followed by 11900 strike, while maximum Call OI is at 12000 followed by 12100 strike. We have seen meaningful Put writing at 12000 then 11950 strike while Call unwinding is seen at immediate strike price. Option data suggests a shift in trading range in between 11900 to 12200 zones.
● India VIX moved up by 0.89% at 15 levels. Now VIX needs to hold below 15 zones to surpass the recent highs and to extend the fresh high territory.
● Bank Nifty witnessed sustained buying interest throughout the session and headed towards 31600 zones. It engulfed the price movement of last three trading sessions and formed a big green body candle on daily chart. It has been forming higher highs – higher lows from last seven weeks and supports are gradually shifting higher
● Now it has to continue to hold above 31200 zones to head towards life time high of 31783 then a fresh rally towards 32000-32250 zones, while on the downside major support exists at 31000-30800 zones
● Long in Bharti Infratel, IbullHsgFin, L&T Fin, Jindal Steel and Hindalco
● Shorts in Yes bank, Zeel, BEL, Dish TV and ONGC