After falling 5 percent in two consecutive week, markets took a breather last week as Nifty found support near 16850 and recovered sharply by more than 2 percent.
The Nifty future during this week ranged from 17800 to 17200. Private Banks and IT sector contributed the most to the rise, while Nifty witnessed short covering on OI (open interest) front in the week gone by.
The Bank Nifty on the other hand was much more volatile as it gyrated between 39900 and 37700 during the last week. Overall, Bank Nifty ended with a gain of around 1000 points last week. It also witnessed Long Buildup on the OI front in the week gone by.
Further diving into the Nifty upcoming Weekly expiry CE writers shows aggressions by building more position compared to PE writers.
Nifty immediate support stands at the 17500 levels where nearly 31 Lakh shares were added, followed by 17000 levels with 20 lakh shares.
On the higher side, immediate resistance level is at 17800 where nearly 59 lakh shares were added followed by vital resistance at 18000 with addition of 55 lakh shares.
Here’s a look at the Bank Nifty upcoming weekly expiry data: On the upper side, Bank Nifty immediate resistance stands at 39000 where nearly 19 lakh shares were added; vital resistance stands at 40000 where nearly 23 lakh shares were added. On the downside immediate support level stand at 38000 where nearly 14 lakh shares were added.
India VIX still trading on the upper regime. The volatility index declined 8.35 percent from 20.70 to 18.73 over the week. Spike in the India VIX has created a fear in the market. Further spikes in the index can lead to more fear.
Looking at the sentimental indicator, Nifty OI PCR for the week has decreased from 0.90 to 0.918. Bank Nifty OIPCR over the week increased from 0.656 to 0.684 compared to last Friday. Overall data indicates more of CE writers over PE writers in Nifty.
Moving further to the weekly contribution of sectors to Nifty, most of the sectoral indices have positively contributed such as Private Bank, IT and FMCG has collectively contributed nearly 290 in the Nifty 395 points gain. Whereas OIL, Power, Fertilisers contributed on the marginally on negative side.
Looking towards the top gainer & loser stocks of the week in the F&O segment. Dr Lal PathLabs topped by gaining over 11.5%, followed by Jindal Steel 11.4%, Hindustan Copper 10.3%. Whereas, HPCL lost over 10.4%, MCX 8.5%, Godrej Properties 7.4% over the week.
Considering the Bearish momentum along, upcoming week can be approach with a low-risk strategy like Modified Put Butterfly in Nifty.
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