The Bank Nifty remained positive throughout the day following a consolidation breakout on the daily chart. During the day, it moved closer to 14-DMA.
After a long period, the Nifty broke its lower highs lower lower lows formation and staged a recovery thanks to buying. The index closed 0.85 percent or 147 points higher at 17,451. (Blue bars show volume and golden bars open interest or OI)
On the options front, 17,400 and lower strikes saw call unwinding as they shifted their position higher. At the same time, put writers increased their positions at these levels. Chandan Taparia, Equity Derivatives Analyst, Motilal Oswal Financial Services, said he sees some buying in the market tomorrow. “Traders can simply buy calls or deploy bull call spreads with a 200-point gap,” he said. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)
The Bank Nifty remained positive throughout the day following a consolidation breakout on the daily chart. “During the day, it moved closer to 14-DMA. The momentum oscillator RSI is in bullish crossover. A double bottom formation on the daily RSI is likely to provide positive momentum in the space.
On the higher end, it may move towards 41,000. On the lower end, support is placed at 40,400,” Kunal Shah, Senior Technical Analyst at LKP Securities. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)
Polycab India saw long buildup. A long build-up is a bullish sign that happens when open interest and volume increase with the rise in share price. Rain Industries, Hindustan Copper and Nalco 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.)
Ashok Leyland saw massive trader interest as it saw 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.)
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