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The market has been wedged in a range of 14,250 -15,050 since the past month, with strong resistance cropping up near the upper band.
MUMBAI: In a clear sign of growing concerns over the economic fallout from surging Covid cases, foreign institutional investors (FIIs) have sharply cut their bullish bets on Nifty and Bank Nifty futures. Coupled with cash market sales, this has dragged down the Nifty by 2.7% over the past three sessions.
While selling ₹4,821 crore of shares so far this month, FIIs cut their cumulative bullish bets on the Nifty and Bank Nifty futures from 52,927 contracts on April 29 to just 4,487 contracts on May 4. Last month they net sold shares worth ₹9,659 crore, show NSDL data.
Mumbai: Traders aggressively rolled over bullish bets into the March series in the extended two-hour trading session on Wednesday, introduced after the four-hour shutdown of trading on NSE earlier in the day.
The sharp surge in the market after trading resumed led by private lenders, which soared on the government’s decision to lift its embargo on the grant of government businesses to these banks, pushed market participants to carry forward their wagers ahead of the expiry of the February series on Thursday.
Brokers and traders have been worried that the rollover process of derivative positions would be disrupted and would heighten confusion on Thursday if the NSE did not resume trading on Wednesday.
Mumbai: Could the Nifty be ready for a bounce, having fallen almost 3% from a record high of 15,431.75 on February 16 through 14,981.75 on February 19? Strategists and analysts tracking option trader activity at a marketwide level seem to think so.
For four sessions through Friday, traders sold more call options than put options on stocks, Nifty and Bank Nifty, culminating in the Nifty correcting 450 points from its record high. On February 16, when the Nifty tested a new high, the traders sold Rs 280 crore worth more calls than puts. The difference widened to Rs 13,604 crore the next day. It widened further to Rs 26,982 crore on Thursday.
Synopsis
Nifty’s range next week based on the 13,700 call and put value is 13,476-13,924. The index closed up 1.1 per cent at 13,749.25 at the end of the holiday shortened week.
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December 31 expiry Nifty options’ put call ratio was 1.49, implying more put than call selling, a bullish indicator.
MUMBAI: The Nifty could move toward a new high of 13,924 if it breaks and sustains above the record high of 13,777.50, having come within kissing distance of it intraday on Thursday, derivative data show. Some analysts are not ruling out a dip before the market makes a tryst with a new high.
Nifty range for December at 13,471-13,929, with bias for upside
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Synopsis
The record high of 13777.5 was made on December 21, before the Nifty plunged to 13131.45 on fears of a more deadly Covid variant, which spooked global markets.
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From here the Nifty recovered and hit an intraday high of 13771.75 Thursday , which is weekly expiry.
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The Nifty could course toward a new high of 13900 -plus if it breaks and sustains above the record high of 13777.50, having come within kissing distance of it intraday Thursday.
The record high of 13777.5 was made on December 21, before the Nifty plunged to 13131.45 on fears of a more deadly Covid variant, which spooked global markets.