The Nifty closed last week with a loss of around 1.42%. During the week, the index gyrated between 18334 and 17872. On the OI (open interest) front, a short build-up was witnessed in the Nifty January Futures over the week as there was an increase in OI.
On the other hand, the Bank Nifty January Futures lost about 1.85% as they closed the week at around 42,368. The Bank Nifty futures gyrated between 43,710 and 42,052 last week. Overall, the Bank Nifty ended the week with a loss of about 798 points.
Diving further into the Nifty upcoming weekly expiry, the immediate resistance stands at 18,000, where nearly 123.62 lakh shares are open interest, followed by vital resistance at the 18,200 level, where about 69.76 lakh shares are open interest.
On the lower side, the immediate support level is at 17,800, where nearly 45.40 lakh shares are PE option open interest, followed by 17,500, where nearly 48.40 lakh shares are PE option open interest. At 19,000, about 80.90 lakh shares are CE options open interest, which is a substantial OI built-up.
Looking at the Bank Nifty upcoming weekly expiry data, on the upside, the immediate and vital resistance is at 43,000, where nearly 41.51 lakh shares are CE open interest, whereas, on the lower side immediate and vital support is at 42,000, with about 24.36 lakh shares as PE open interest.
The India VIX, the fear gauge was almost flat at 14.78 over a week-to-week basis, from 14.87. The India VIX has dropped and been around the lows. Further, any uptick in the India VIX could start a downward move in the Nifty and vice versa.
Looking at the sentimental indicator, the Nifty OI PCR for the week has decreased to 0.765 from 0.883. Over the last week, the Bank Nifty OIPCR decreased to 0.59 from 0.80 compared to the previous Friday. Overall data indicate CE writers are more aggressive than PE writers in the Nifty.
Moving to the weekly contribution of sectors to the Nifty, the private bank, Information Technology and NBFC sectors were negative contributors, with 94.06, 72.70 and 57.01 points, respectively. Auto, Oil & Gas, and pharma contributed about 6.94, 20.94 and 3.79 points, on the positive end, respectively. PSU Bank, Cement, Power and FMCG all contributed negatively to the Nifty by 6.04, 5.32, 4.99 and 3.94 points, respectively.
Next, let’s look at the top gainers and losers last week in the F&O segment. PFC topped, gaining over 10.7%, followed by Max Financial Services with 9.4%, and Havells with 8.1%. On the other hand, Indiabulls Housing Finance lost -10.1%, Bajaj Finance lost over -9.2%, and Cholamandalam Investment and Finance Company lost -7.9% over the week.
The week ahead can be approached with a low-risk strategy, such as Iron Condor, for the 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.
