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Nifty opened positive on Wednesday, but remained rangebound for the first half of the day. It surpassed its previous high of 16,701 and made yet another lifetime high of 16,712 levels. However, the index failed to hold at higher levels and drifted below its opening levels in the latter part of the session to close on flattish note. It formed a bearish candle on the daily scale, but continued to form higher highs and lows since the last three sessions. Now it has to continue to hold above 16,600 level to extend the move towards lifetime high territory of 16,700-16,750 zone while on the downside support is seen at 16,500 and 16,380 levels.

India VIX moved up 2.33 per cent from 13.18 to 13.49 levels. A cooldown in volatility from recent swing highs has again given a buy on decline stance to the market and now VIX needs to hold below 12 level to get more buying interest in the broader market.

On the options front, maximum Put Open Interest stood at 16,500 followed by 16,600 leves, while maximum Call OI was seen at 16,700 followed by 16,800 strike. Call writing was seen at 16,700 and then 16,750 levels while there was Put writing at 16,600 and then 16,650. Options data suggested a trading range between 16,500 and 16,750 levels.

Bank Nifty opened positive but failed to hold at higher levels and moved down to key support at the 35,500 level, then finally closed the day with a loss of 125 points. It formed a bearish candle on the daily scale but continued to form higher highs and lows since the last three sessions. Now it has to hold 35,500 level to witness a bounce towards 36,000 level while on the downside support was seen at 35,300 and then 35,000 levels.

Nifty futures closed flat to positive with the gains of 0.08 per cent at 16,633 level. Among specific stocks, the trade setup looked bullish in

, , , Godrej Consumer Products, Torrent Power, Adani Enterprises, Hindalco, ONGC, IndiGo, BEL, Reliance, HUL and TCS but weak in Havells, Can Bank, ICICI Pru, , Voltas, Maruti, JSW Steel, Amara Raja Battery, Axis Bank, Power Grid and ACC.

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

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