F&O: India VIX moves up 7%, 12,000 level critical for Nifty

By Chandan Taparia

Nifty50 opened on a positive note on Thursday, but remained volatile throughout the session, as RBI surprised markets by maintaining status quo. The index took support around the psychological important 12,000 mark, and concluded the session with a marginal loss to form a Red Body Candle on the daily chart.

At the current juncture, the index is hovering around the lower end of the channel and the 20-EMA on daily chart. On the sectoral front, gains in the IT space got evened out by a corrective move in banking heavyweights. Going forward, Nifty needs to sustain above the 12,000 mark to witness an up-move towards 12,158 and then 12,250 levels. On the flipside, strong support is placed in the 11,935-11,950 zone and then 11,880 level.


On the monthly options front, maximum Put open interest stood at 12,000 followed by 11,500 level, while maximum Call OI was at 12,500 followed by 12,000 levels. There was Call writing at 12,200 and 12,400 levels, while Put writing was seen at 11,800 followed by 11,400 levels. Options data suggested a trading range between 11,900 and 12,300 levels.

India VIX moved up 7.39 per cent to 14.30 level.

Bank Nifty started the session with an upside gap and sustained above the 32,000 mark till RBI money policy announcement. After the central bank maintained status quo in key policy rate, the banking index gave up the gains and corrected sharply in the later half. It underperformed the benchmark index and formed a red body candle on the daily chart.

Momentum oscillator RSI hovered around its support in the 60-62 zone. As long as it holds above the 31,500 level, the banking index may move higher towards its lifetime high of 32,157 and begin a fresh rally towards 32,500 level, while a strong support is placed near the 31,400 mark.

Nifty futures closed negative at 12,043 with a losses of 0.38 per cent. Long buildup was seen in Tata Elxsi, Mindtree, Dish TV, Concor and Equitas while shorts were seen in IndiGo, Godrej Consumers, L&T Finance, IGL and Coal India.

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