Summary:
1. With expiry week weighing upon Nifty, Friday’s action seemed like cows coming back home after grazing the entire day. The range for expiry as indicated by options table is 5400-5500
2. 5500 is the resistance. With 14L new calls added with VWAP of 56 bucks on Friday it would be interesting to see if these new call writers – with almost no time premium for expiry – will hold on to their calls till expiry. One the same lines 32L 5500PEs covered.
3. 5400 is the current support with a monstrous OI of 1 Cr+ and only 5L covered on Friday despite an almost 150+ point intraday fall
4. For March series highest OI of puts is at 5400 (40L) and highest OI for calls is at 5500 (17L)
5. PCR dipped from 1.28 to 1.18 – due to call addition and put covering @5400/5500
Nifty Futures:
Feb: 2.49Cr OI down 4% (10.7L shares cut)
March: 58L OI up 51% (19.8L shares added) — 50% more roll over on Friday
Banknifty Futures:
Feb: 10.8L OI up 4% (0.45L shares added) – BN still suffers from OI deficiency but the trend seems to be that more OI is getting added after the low of almost 10000 was made day before ‘Bad IIP day’.
Market makes the news and not the other way round:
Just wanted to point out that this massive 1300 point rally in Banknifty & almost 400 point rally in Nifty – started on the day when bad IIP data was announced.
Still not convinced about the fact that its not the news that makes the market but its the market that makes the news? – Wake up Sid!
