Pre-Market Derivatives, Technical Set-up and Derivatives Research Analysis for traders by Motilal Oswal

Nifty opened positive on Friday’s session last week but remained highly volatile in broader trading range of 13400 to new lifetime high of 13579 levels. It remained consolidative in the initial part of the day followed by a dip of 100 points which was again recovered in the last hour of the trade. It formed a Doji Candle with long lower shadow on daily scale which indicates absence of momentum at higher zones but declines are nicely being bought. On the weekly front, it continues its northward trend and has been forming higher highs from the last six weeks with consecutive positive close.

Bullish setup was seen in Apollo tyres, ONGC, NTPC, Jub food, Coal India, Marico, MGL, UBL, ICICI Bank and Titan while Bearish setup was witnessed in TVS Motor, Axis Bank, MFSL, PEL, ACC and M&M.
Now it has to continue to hold above 13350 zones to witness an up move towards 13750 zones while on the downside key support exists at 13300 zones. India VIX was up by 0.45% from 18.71 to 18.79. Overall lower levels of volatility suggest that Bulls are holding the tight grip and any small decline could be bought in the market.

On option front, On option front, Maximum Put OI is at 13000 followed by 12000 strike while maximum Call OI is at 13000 followed by 13500 strike. Marginal Call writing is seen at 13700 then 13800 strike while Put writing is seen at 13200 then 13500 strike. Option data suggests an immediate trading range in between 13200 to 13750 zones.

Bank Nifty opened positive and remained in a wider trading range in between 30300 to 30800 zones. It remained volatile in the latter part of the trading session and ended the day with gains of around 100 points. It formed a small Bullish Candle on daily scale and continues its positive setup and forming higher highs - higher lows from the last six weeks.

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Now it has to continue to hold above 30500 zones to witness an up move towards 30800 then 31000-31200 zones while on the downside supports are seen at 30200 then 30000 levels.