In the upcoming weekly expiry, Nifty immediate resistance stands at 18200 levels where nearly 82.65 lakh shares is the OI (open interest) followed by vital resistance at 18300 levels where OI is about 69.40 lakh shares.
Nifty closed the last week with a gain of around 1.37 percent, gyrating between 18374 and 17941. On the OI (Open Interest) front, long build-up was witnessed in Nifty January Futures over the week gone by.
On the other hand, Bank Nifty January Futures gained about 3.05 percent, swinging between 41869 and 43606. Overall, Bank Nifty ended the week with gains of about 1,279 points.
Weekly expiry
Looking at the Bank Nifty upcoming weekly expiry data, on the lower side, the immediate support level is at 18000 where nearly 46.36 lakh shares is the PE (Put European) options OI followed by 17800 where nearly 43.20 lakh shares is the PE options OI.
On the upside, Bank Nifty immediate and vital resistance is at 43500, where nearly 29.10 lakh shares is the CE (Call European) open interest whereas, on the lower side, the immediate and vital support is at 43000, with about 27.72 lakh shares being the PE OI.
India VIX, the fear gauge, decreased to 14.73 over a week-to-week basis from 16.16. India VIX has dropped and has been around the lows. Any uptick in India VIX could start the downward move in Nifty and vice versa.
Sentimental indicators
Looking at the sentimental indicators, Nifty OI PCR (put/call ratio) for the week has increased to 0.881 from 0.719. Bank Nifty OI PCR over the week rose to 0.81 from 0.67 compared to the previous Friday.
Overall data indicates CE writers are less aggressive than PE writers in Nifty.
Moving further to the weekly contribution of sectors to Nifty, metal, private bank and PSU bank were positive contributors, with 22.85, 12.65 and 18.18 points, respectively.
FMCG, IT and oil & gas contributed about 31.11, 21.35 and 23.50 points on the negative end, respectively. Pharma, cement, infra and capital goods contributed 3.77, 4.25 and 5.74 points on the negative end.
Nifty monthly rollover stands at 72.5 percent in December to January series expiry while Bank Nifty rollover stands at 84.63 percent. Balkrishna Industries has the highest stock-wise rollover of 97.4 percent, followed by Shree Cements at 96.51 percent and Info Edge at 95.07 percent while Cipla has the lowest rollover of 57.48 percent followed by Gujarat Gas and GMR Infra with rollovers at 63.12 percent and 64.83 percent, respectively.
Gainers and losers
RBL Bank was the top gainer with over 19.7 percent gains, followed by Indiabulls Housing Finance 19.4 percent while Federal Bank saw 15 percent gains. Whereas Dr Lal Path Lab lost 6 percent, Apollo Hospitals lost over 4.3 percent and Cipla 3.6 percent over the week.
This week can be approached with a low-risk strategy like modified iron butterfly in Nifty.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
