The Nifty closes the week with a loss of around 2.43 percent. During the week Nifty gyrated between 18,519 – 17,831. On the OI (Open Interest) front, short built-up was witnessed in Nifty over the week gone by as there was an increase in OI.
On the other hand, Bank Nifty lost about 3.56 percent as it closed the week around 41746. Bank Nifty future gyrated between 43,687 to 41,657 and ended the week with loss of about 1,540 points.
Further diving into the Nifty upcoming Weekly expiry, Nifty immediate resistance stands at 18,000 levels where nearly 93.84 lakh shares is the open interest followed by vital resistance at 18,200 levels where about 87.53 lakh shares is the open interest.
On the lower side immediate support level is at 17,800 where nearly 41.61 lakh shares is the PE options open interest followed by 17,500 where nearly 46.59 lakh shares is the PE options open interest.
Looking at the Bank Nifty upcoming Weekly expiry data. On the upside, Bank Nifty immediate and vital resistance is at 42,000 where nearly 21.23 lakh shares is the CE open interest, whereas, on the lower side immediate and vital support is at 41,500, about 14.57 lakh shares, which is the PE open interest.
India VIX, fear gauge, increased to 16 over a week to week basis from 14.07. India VIX is gradually rising from the lows. Further, any uptick in India VIX could start the downward move in Nifty and vice versa.
Looking at the sentimental indicator, Nifty OI PCR for the week has decreased to 0.719 from 0.807. Bank Nifty OIPCR over the week decreased to 0.67 from 0.758 compared to last Friday. Overall data indicates CE writers are more aggressive than PE writers in Nifty.
Moving further to the weekly contribution of sectors to Nifty. Pharma was the only sector that contributed positively to Nifty by 33.24 points. Private Bank and Oil & Gas negatively contributed 134.70 and 70.80 points respectively. Information Technology and Auto have contributed on the negative side in the Nifty by 58.63 and 58.67 points, respectively. Metal also contributed negatively to Nifty by 28.54 points. NBFC and FMCG have contributed on the negative side in Nifty by 64.87 and 49.64 points.
Looking towards the top gainer & loser stocks of the week in the F&O segment. Abbott India topped by gaining over 5.2 percent, followed by Divis Laboratories 5 percent, Dr Lal Path Lab 4.6 percent. Whereas IDFC First Bank lost -14.5 percent, India Cements has lost over -14.1 percent, City Union Bank lost -13.1 percent over the week.
The upcoming week can be approached with a low-risk strategy like Modified Call Butterfly in Nifty.
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