Nifty opened positive on Tuesday and remained rangebound for the first half of the session. However, weakness crept in during the second half and the index dropped to 14,461 level. Technically, it formed a bearish candle on the daily time frame chart and wiped out the recovery of the last session.
Now, it has to hold above 14,500 level to witness a bounce towards 14,700 and 14,800 levels, while on the downside support exists at 14,400 and 14,250 levels.
India VIX fell 2.87% from 23.69 to 23.01 level. India VIX needs to hold below 20 level to again attract bullish stance.
On the options front, maximum Put Open Interest stood at 14,000 level followed by 13,500, while maximum Call OI was seen at 15,000 level followed by 15,500. There was marginal Call writing at strike price 15,000, while minor Put writing was seen at strike price 14,000. Options data suggested a wider trading range between 14,000 and 15,000 levels, while the immediate trading range was seen in the 14,200-14,800 zone.
Bank Nifty opened with a gap up, and even though it remained in the positive territory in the initial hours of trade, the second half pulled the index and it breached the 32,200 level. Even with such weakness, banking stocks slightly outperformed the broader market and the index settled the session with a loss of around 200 points.