"Investors appear to have lightened their positions ahead of the US FOMC (Federal Open Market Committee) meeting this week," said Aamar Deo Singh, Sr. vice president of research at Angel One. "Further, today being Bank Nifty weekly expiry, added to the selloff."
On the weekly options front, the maximum Call OI is placed at 23000 and then towards 22850 strikes while the maximum Put OI is placed at 22500 and then towards 22400 strikes.
The Nifty made a sharp recovery (400 points) on Friday, as buying demand emerged near key support of 21700, despite weak sentiments, as prices approached oversold readings.
Get expert insights from Dharmesh Shah, Head-Technical at ICICIDirect, on the positive outlook for Reliance Industries and Bharat Dynamics Ltd (BDL). Discover the potential uptrend for Reliance and the consolidation phase of BDL in the current market scenario.