The resistance level, after remaining at 15,800 strikes for two consecutive weeks, for Nifty rose 200 points to 16,000 strikes, while the support level jumped to 15,900 strikes from 15,000 strikes, where it stood. for four consecutive weeks.
Tech stocks were the main influence on the market movement last week. Tech stocks Wipro, L&T, Tech Mahindra, HCL Tech pushed the NSE Nifty above 15,900 points after six weeks of consolidation. However, going forward, analysts expect bank stocks to remain the center of attention as bank results will.
However, the top 10 Nifty stocks remained limited in their range and were trading below resistance levels due to higher call bases.
Dhirender Singh Bisht, Senior Research Analyst (Derivatives) at SMC Global Securities Ltd, said: “The Nifty Indices hit their all-time highs over the past week, but still have failed to surpass the key psychological bar. of 16,000 points as bank securities. remain behind. However, computer metal and pharmaceuticals stocks shone to support the markets. ”
On the options front, derivative activity is relatively weak compared to the past two weeks. Given the recent Put writing and Nifty’s move above 15,900 strikes, derivative analysts expect Nifty to bias positively towards the 16,200 level. Therefore, long positions are recommended up to what the Nifty is holding above the 15,800 level, which is the main selling base. A move below 15,800 may keep the current range limit move intact.
The highest Call OI is 16,000 strikes followed by 16,200 / 16,500 / 16,100 / 15,900 strikes. Additionally, 16,000 / 16,500 / 16,300 / 15,950 strikes witnessed a reasonable addition to the OI appeal.
On the Put side, 15,900 strikes recorded the maximum Put OI followed by 15,900 / 15,880 15,700 / 15,300 strikes. Moderate Put OI buildup is seen at 15,900 / 15,700 / 15,650 / 15,300 strokes.
“On the derivatives front, the fight between the bulls and the bears has been observed in a range of 15,900 points and 16,000 points, as all the perpetrators hold maximum open interest at 16,000 strikes, while the authors of put saw open interest added in 15,900 puts, ”Bisht said.
BSE Sensex closed the week ended July 16, 2021 at 53,140.06 points, a net recovery of 753.87 points or 1.43%, from the previous week’s close of 52,386.19 points.
Posting a rebound of 233.60 points or 1.48%, NSE Nifty finished the week at 15,923.40 points from 15,689.80 points a week ago.
“The technical setup suggests that the 36,000 mark will act as crucial resistance for the banking index above which we may see another breakout on the charts that could take Nifty to all-time highs and above the 16,000 level this time around while Bank Nifty could hit the 36,800 level in upcoming sessions. ”
India VIX was down 4.60% to 11.70. The derivatives segment saw a slight increase in the volatility index during the penultimate week. A surge in volatility is expected given the results of nearly 12 index companies next week.
Implied volatility (IV) of calls closed at 11.62 percent, while that of puts closed at 12.07 percent. The week’s Nifty VIX closed at 12.27%. OI’s PCR for the week closed at 1.42, “Bisht noted.
In the M&O space, FII activity has remained sluggish since the start of the M&O series in July. The FII bought index futures worth Rs 3,825 crore, equity futures contracts worth Rs 1,037 and Rs 793 during the week.
The NSE banking index closed the week at 35,751.80 points, a net gain of 679.85 points or 1.93%, from the previous week’s close of 35,071.95 points.
Since most banking heavyweights hover near their highest calling bases, moving above their calling bases will therefore be crucial for banking performance. According to ICICI Direct.com, the strike of 36,000 people is expected to be a critical level and sustainability above this level could open the door to further benefits.
The market saw the addition of new long positions as the index moved towards its call base of 36,000 raises as well as a rise in the OI. Analysts believe that the current momentum should continue in the coming days.
Products Contracts Revenue (Rs / cr) Premium (Rs / cr)
Futures contracts on indices 1,85,618 15,768.05 –
Futures contracts on shares 6 94 140 55 707.29 –
Options on indices 257,50,180 25,37,319.68 10,945.59
Stock options 26 46,642 2 17,627.38 3,315.00
F&O Total 2 92 76 580 28 26 422.40 14 260.59