FIIs constructing nude shorts on Index Futures
After 6 weeks of standing at 17,000 PE, the assistance degree decreased by 1,000 indicate 16,000 PE, while resistance degree alleviated by 1,000 indicate 18,000 CE. Derivatives area taped a sharp shorting on Call side at 18,000 degree and also it’s suggesting even more drawback motion in coming week with assistance at 16,500 from Options side, observe by-products experts. Though internet brief placements by FIIs decreased on an once a week basis, internet shorts began raising with the current sell-off.
The 18,000 CE has highest possible Call OI adhered to by 19,000/ 18,500/ 17,800/ 18,200/ 18,300/ 17,900/ 18,700 strikes, while 18,000/ 18,100/ 18,300/ 18,500, 17,650/ 17,700 strikes experienced considerable accumulation of Call OI.
Coming to the Put side, optimum Put OI is seen at 16,000 adhered to by 16,500/ 16,800/ 16,900/ 16,200/ 16,200 strikes. Further, 16,800/ 16,700/ 16,600/ 16,200/ 16,000 strikes taped modest enhancement of Put OI.
Dhirender Singh Bisht, elderly study expert (by-products) at SMC Global Securities Ltd, stated: “From the derivatives front, Call writers remained active at 17500-17600 & 17700 strikes, whereas Put writing was observed at 17000 strike.”
Kush Ghodasara, CMT, an independent market specialist, states: “Last two days, we have seen FIIs building naked shorts on Index Futures of worth Rs4,500 crore, while on Options side, we witnessed short covering on Put strikes of 17,500 and 17,000, while sharp shorting was seen on Call side at 18,000 level. While fresh Open Interest was seen at 17000-16500 strikes for October month. We could see more downside in the coming week with support at 16,500 from Options side.”
According to the information from ICICIdirect.com, the Call choices Open Interest in Nifty is substantially greater contrasted to the Put bases and also highest possible Put base of 40 lakh shares goes to 17500 strike, while 17800 Calls and also greater strikes holds substantially greater OI with 18000 Call OI is virtually 90 lakh shares. Hence, upsides appear limited in the coming week. Only if it relocates over 17800 once more must one anticipate resumption of the uptrend.
“As US interest rates hit 14-year high in inflation, the global market observed another melt down in the week gone by. Nifty and Bank Nifty closed in red week on week basis, where more selling was seen in Bank Nifty as compared to Nifty. Bank Nifty slipped and closed below 40,000 psychological level,” includedBisht
For the week finished September 23, 2022, BSE Sensex shut at 58,098.9 factors, a bottom line of 741.89 factors or 1.26 percent, from the previous week’s closing of 58,840.79 factors. Registering a fall of 203.50 factors or 1.16 percent, NSE Nifty finished the week at 17,327.35 factors from 17,530.85 factors a week back.
Bisht projections: “For upcoming week, we expect markets to remain under pressure once again and volatile. On the downside, 17200-17000 zone would act as support for Nifty, while the 17500-17600 zone is likely to cap upside in prices. We advise traders to focus on stock specific-action and avoid making any fresh position unless there is any positive data build up in the market.”
Volatility index India VIX shut greater by 9.45 percent at 20.59 degree. Volatility index climbed over 20 degree once more after the United States Fed treked rates of interest. The 17500 must be an essential assistance degree, listed below which the weak point might prolong in the direction of 17200 once more.
“Implied Volatility (IV) of Calls closed at 17.57 per cent, while that for Put options, it closed at 18.97 per cent. The Nifty VIX for the week closed at 18.82 per cent. PCR of OI for the week closed at 0.92,” saidBisht
Bank Nifty
NSE’s financial index shut the week at 39,546.25 factors, an additional gain of 1,230.55 factors or 3.01 percent, from the previous week’s closing of 40,776.80 factors. “In Bank Nifty, Call writers are active at 40000 Call strike, whereas Put writers added marginal positions in 39500 and 39000 strikes,” statedBisht
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