Nifty50
After a positive start, the Nifty remained volatile in the first half but gained momentum later in the day to end higher for the second straight session on July 23.
The Nifty formed a Doji candle on the daily scale and a bullish hammer pattern on the weekly chart, which indicates that declines were being bought but follow-up was missing at higher zones.
For the time being, traders should remain neutral on the index without creating any directional bets, said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in.
A strong sustainable close above 15,900 can give the much-needed confidence to the bulls which can push the index to 163,00, he added.
In the next trading session, it is important the index holds above 15,768 to retain positive bias as a breach can induce selling pressure on an intraday basis, Mohammad said.
India VIX fell 0.99 percent from 11.88 to 11.76 levels. “Declines in volatility indicate that the bulls are again holding the command and buying interest is seen at every meaningful decline,” said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.
On the options front, the maximum Put OI is at 15,000 followed by 15,800 strikes, while maximum Call OI is seen at 16,000 followed by 15,900 strikes. Options data suggests an immediate trading range of 15-700-16,000.
“The Bank Nifty opened positive and after an early decline, it took support near to 34,400 and managed to surpass immediate key barrier of 35,000 zones,” Taparia said.
It formed a bullish candle with a long lower shadow on the daily scale and a Doji candle on the weekly chart, pointing to a tug of war between the bulls and the bears, he added.
On the stock front, a bullish setup was seen in Jubilant FoodWorks, ICICI Bank, MFSL, Dr Lal Path Labs, Indiabulls Housing, Wipro, ITC, ACC, SBIN, ICICI Prudential, Tata Consumer, Tech Mahindra, Nestle, DLF and UBL. Weakness was visible in Indus Tower, Glenmark, Tata Motors, PVR, Bharat Forge, Tata Chemicals, Cadila and HUL.
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