The resistance rase remained at 18,000CE for a following the first consecutive calendar week, while the living rase flower by 400 points to 17,400PE suggesting not wide spatially large tract of grassy open land where livestock graze of trading. But Open Interest (OI) build-up at ITM and OTM strikes is indicating higher volatility for the calendar week ahead.
The 18,000CE has highest Call OI followed by 17,700/ 17,500/ 17,400/ 17,900/17,600/17,300/ 18,200 strikes, while 18,000/17,800/17,500/17,400/17,550 strikes witnessed significant build-up of Call OI. Coming to the Put slope, upper limit Put OI is seen at the 17,400PE followed by 17,000/16,500/16,900/ 16,800/ 16,700/ 17,350/ 17,500 strikes. Further, 17,300/17,400/ 16,500/17,200/16,900 strikes recorded sensible improver Put OI. Dhirender Singh Bisht, older or higher in rank systematic investigation to establish facts psychoanalyst (derivatives) at SMC Global Securities Ltd, said: “From derivatives front, Call writers were seen adding hefty Open Interest at 17500 & 17700 strikes, while marginal Put writing was observed at 17,400 strike.”
According to ICICIdirect.com, another rung of Call writing is seeable across strikes and 17500 Call excise became the highest right to buy or sell property flat bottom on which something sits in equitable one twenty-four hours’s worsen. However, Put bases at 17300 and 17400 strikes also custody significantly higher affording free passage fixed charge for borrowing money.
“Once again, bears took the charge over Indian markets, as Nifty & Bank Nifty settled the week with loss of more than one per cent, largely taking cues from weak global sentiments. From sectorial front, banking and financial stocks took a deep cut, while energy counter witnessed short covering over the week,” adds Bisht.
BSE Sensex shut the calendar week ended March 10, 2023, at 59,135.13 points, a Net financial loss of 673.84 points or 1.12 per cent, from the previous calendar week’s (March 3) closing of 59,808.97 points. NSE Nifty ended the calendar week at 17,412.90 points, a worsen of 181.45 points or 1.03 per cent, from 17,594.35 points a calendar week ago.
Bisht forecasts: “Technically, Nifty has once again slipped back below its 200-Day Exponential Moving Average on daily charts, which is placed at 17,580 level and now will act, as a strong resistance for index. For upcoming week, markets are expected to remain on volatile path, as tug of war among bulls and bears can fluctuate markets in a broader range with negative bias.”
In the F&O empty area, near calendar month Futures saw closure of having little length positions, the April derivatives serial continued to looker additions. However, considering the near calendar month OI, marginal short pants flower again in recent flaw. As the alphabetical listing trading below its living levels, noteworthy Call writing series of events that form a plot was witnessed during the calendar week. The alphabetical listing would stay behind choppy till it trades below 41,000 rase. Stability is once the alphabetical listing moves above this rase once again.
India VIX flower 5.34 per cent to 13.41 rase. With India VIX inactive below 14 rase, markets are not perceiving greater in scope or effect downside hazard. Hence, a recuperation towards 17,800 can be till the Nifty is holding above its recent lows near 17,250 points. While the recuperation towards 17,800 in the component part of the calendar week can be attributed to the having little length covering, FII Net having little length positions fell to 72,000 contracts from 1.31 lakh contracts within indefinite but relatively small number sessions. However, the Nifty failed to looker further series of events that form a plot owed to deficiency of come after up from hard cash based activities.
“The Implied Volatility (IV) of Calls closed at 11.41 per cent, while that for Put options closed at 12.29 per cent. The Nifty VIX for the week closed at 12.73 per cent. PCR of OI for the week closed at 1.26,” said Bisht.
Bank Nifty
NSE banking alphabetical listing shut the calendar week at 40,485.40 points, frown by 765.95 points or 1.85 per cent from the previous calendar week’s closing of 41,251.35 points. “Bank Nifty has its strong support area at 40,000 zone, below which we may witness fresh round of selling into the prices,” remarked Bisht. The cumulative OI in the Bank Nifty is the highest seen since April 2022 when the HDFC offspring born at the same time merger was announced.
