A look at the futures Open Interest (OI) data indicates a build-up of long positions in Nifty futures, with India VIX falling by 4.79% to 13.75, said Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities emphasising that this gives major comfort to the bulls. Despite a 1.41% fall in Nifty in December, the long-short ratio jumped to 65.22% from 62.31% on December 19, as the Foreign Portfolio Investors (FPIs) increased their long exposure in Index futures, Ramani said.
As a broader market rally is expected, here are three stocks that have formed a strong setup for further rally on the charts giving a good risk-reward ratio.
The cumulative OI of current, next and far series has surged by 5.63 per cent, which indicates overall long build up. While, Bank Nifty future has also witnessed long build up.
Options data suggests a trading range of 19300-20100, with the 20100 mark as a crucial resistance zone. Highest call OI has moved to 20,000 strike while on the downside the highest put OI has moved higher to 19800 for the weekly expiry.