Bank Nifty has to continue to hold above 30,000 zones to attract buying interest towards its life time high of 30,669 levels while on the downside major support is seen at 29,650 levels.
Nifty opened positive at a new lifetime high of 11,856 marks, but failed to hold its gains and drifted towards 11,740 zones on April 18. It formed a Bearish Belt Hold or a Dark Cloud Cover pattern on the daily scale while small Bullish Candle on a weekly scale.
Overall pattern setup suggests that trend could remain intact while decline could be bought to continue its upward journey. However, the index has been making higher highs - higher lows from last four trading sessions on the daily scale, and till it holds above 11,700 zones, it could extend its momentum towards 11,888 and then 12,000 zones, while on the downside, support is seen at 11,666 then 11,550 levels.
Nifty gave a consolidation breakout in the last week to hit a new high of 11,856 but again drifted back to 11,750 zones in the previous trading band, but supports are inching higher.
India VIX moved up by 8.29 percent in the last week at 22.74 mark which is the highest zones in last six months since October 31, 2018, while VIX is up by 36.58 percent in this month, with its consecutive surge of last six week. Higher VIX is because of the Lok Sabha elections and may turn the Street to a volatile mode in coming weeks.
On the options front, maximum Put Open Interest (OI) is at 11,500 followed by 11,000 strikes while maximum Call OI is at 12,000 followed by 11,800 strikes. Put writing is seen at 11,400 followed by 11,650 strikes while Call writing is seen at 11,800 followed by 12,000 strikes. Option band signifies a shift in a higher trading range between 11,600 and 11,900 zones.
Bank Nifty made a new lifetime high of 30,669 marks but failed to hold above 30,500 zones and drifted sharply towards 30,150 levels. It erased the gains of the previous day and formed a Bearish Engulfing pattern on the daily scale and negated it higher highs - higher lows formation after three sessions.
However, it has to continue to hold above 30,000 zones to attract buying interest towards its lifetime high of 30,669 levels while on the downside major support is seen at 29,650 levels.
Stock-specific advance-decline was negative in the last session as index failed to conquer its new high decisively, but many stocks are showing strength and momentum to extend their gains.
Stock wise positive price setup is seen in Reliance Industries, TCS, ICICI Bank, Titan, JSW Steel, BPCL, Tech Mahindra, Marico, IGL, while negative setup in LIC Housing, PSU banks, ADAG stocks, NBFC and most of the metal stocks.
(The author is Derivatives & Technical Analyst at Motilal Oswal)Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.