Chandan Taparia recommendations: How to trade Cummins India, Godrej Consumer, IndiGo shares tomorrow

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Sensex rose 111.66 points, or 0.15%, to end at 72,776.13, while the Nifty 50 settled 48.85 points, or 0.22%, higher at 22,104.05. The Nifty index opened flattish on May 13 and after the fall in the early session, it saw a decent recovery and recouped all its intraday losses. The Bank Nifty index ended its eight-day losing streak and jumped 333 points to close at 47,754.

Here's the technical outlook for Nifty 50 and Bank Nifty for May 14: The Nifty 50 formed a bullish candle on the daily frame with a longer lower shadow indicating a strong pull back move from lower levels. Now it has to hold above 22,050 zones for a bounce towards 22,222 then 22,350 zones whereas supports are placed at 21,950 then 21,800 zones, said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL. Also Read: Wall Street today: US stocks rise as investors eye inflation data On the weekly front, Maximum Call Open Interest (OI) is at 22,300 then 22,500 strike while Maximum Put OI is at 22,000 then 21,800 strike.

Call writing is seen at 22,300 then 22,400 strike while Put writing is seen at 21,800 then 22,000 strike. Option data suggests a broader trading range in between 21,500 to 22,500 zones while an immediate range between 21,900 to 22,300 levels, he added. India VIX, the fear index, spiked 11.53% from 18.47 to 20.60 levels.

Taparia believes VIX needs to fall below 1-18 zones for some stability and smoother ride in the market. Bank Nifty Index opened marginally lower and gradually drifted lower towards 46,983 mark in the first half of the session. However, it witnessed a sharp recovery from lower zones and wiped out its intraday losses to extend the momentum towards 47,800 zones in the latter part of the day.