After a sharp fall at starting of the week Nifty witnessed V-shape recovery and managed to surpass 17500 mark. Nifty traded in broader range of 16950 – 17590, facing hurdle near 17600—17500 levels.
On the OI (Open Interest) front, long build up witnessed in the Nifty over the week gone while it shut shop with the gain of significant gain of 2% at 17549.
On the other hand Bank Nifty managed to sustain above 37000. It closes around 37237 with gain of around 2.50% last week. Over the week it traded between 35840 to 37600. On the OI front, short covering witnessed in the Bank Nifty over the week gone.
Further diving into the Nifty upcoming weekly expiry Call writers showing aggressions by building more position compared to put writers.
Nifty immediate resistance stands at the 17500 levels where nearly 56L shares has been added, followed by vital resistance at 18000 levels with 60L shares highest among all. On the lower side immediate support level is at 17200 where nearly 26L shares, followed 17000 with addition of 27L shares.
Looking at the Bank Nifty upcoming weekly expiry data. On the upper side, Immediate resistance stands at 38000 (15L share) followed by 37000 (15L shares). Whereas, on the downside, 37000 (15L shares) stand at the immediate support level and followed by 36000 (10L shares) as the vital support level.
India VIX, fear gauge, decreased by 12.80% from 18.45 to 16.09 over the week. India VIX is trading near the lowest level of pre-COVID crash. Cool off in the IV has given relaxation to market. Further, any downticks in India VIX can push the upwards momentum in Nifty.
Looking at the sentimental indicator, Nifty OI PCR for the week has increased from 0.906 to. 1.286. Bank Nifty OIPCR over the week increased from 0.711 to 0.911 compared to last Friday. Overall data indicates more of put writers over put writers in Nifty.
Moving further to the weekly contribution of sectors to Nifty. Most of the sectoral indices have contributed positively such as Private Bank, NBFC, Oil and FMCG has collectively contributed nearly +197 in the Nifty 310 points gain. Whereas pharma, telecom and power collectively contributed nearly 15 points on the negative side.
Looking towards the top gainer & loser stocks of the month in the F&O segment. Idia topped by gaining over 26.70%, followed by IEX 21.1%, Granules 14.30%. Whereas, Lal Path Lab has lost over 7.6%, STAR 6.6%, Apollo Hospitals 6.4% over the week.
Considering the bullish momentum along, upcoming week can be approach with a low-risk strategy like modified call butterfly in Nifty.
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