On Nifty, 17800 remains the most immediate hurdle for the index. Call writers were also active at 17,900 and 18,000 strikes. Some put writers were present at 17,700 strike as that still remains the biggest support to the index.
Markets continued to show weakness as traders treaded cautiously ahead of the RBI’s credit policy. Weakness in global markets also hit sentiments back home. Nifty closed down 0.24 percent or 43 points at 17,721.50. Analysts believe markets may continue to witness bouts of intra-day volatility due to lack of any fresh positive triggers in the global arena. (Blue bars show volume and golden bars open interest (OI).)
On the option front, 17800 remains the most immediate hurdle for the index. Call writers were also active at 17,900 and 18,000 strikes. Some put writers were present at 17,700 strike as that still remains the biggest support to the index. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)
Bank Nifty closed with some gains. The index continued to trade in a broad range ahead of the RBI policy wherein 41,000 is a support and 42,000 is a resistance. The index needs to break this range on either side decisively for trending moves, said analysts. “Bank Nifty has congestion in the range of 42500 to 43000, this area has multiple supply levels and a move towards the upside will resume once there is a decisive close above this level. Traders should play this see-saw movement with double debit spreads on both sides as IV has cooled off post the Budget,” said Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)
Navin Fluorine continued to see massive long buildup as open interest rose 27 percent to highest in the quarter. A long build-up is a bullish sign that happens when open interest and volume increase with the rise in share price. Intellect Design, ABB India and Ramco Cement were others that saw heavy long buildup. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)
LIC Housing Finance saw massive short buildup. The short build-up is a bearish sign that takes place when the price of a stock falls, along with high open interest and volume. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)
Aarti Industries, Tata Steel, Vodafone Idea and Hindalco Industries were others that saw short buildup. (Percentage reflects change in futures price during the day.)