Finnifty opened at Rs 20,373.95, down 60.10 or 0.29 percent after closing at 20,434 last week, marking a 97-point increase or a 0.48 percent rise over the past five trading sessions. Soni Patnaik, assistant vice-president of derivatives research at JM Financial, shared insights on Finnifty's outlook for February 5 expiry.
The long to short ratio stands at 33 to 67 percent. The volatility index (VIX) is reported at 14.7, with a positive outlook from foreign institutional investors (FIIs) for both the indices and the FnO stocks.
Looking at the Futures and Options (FnO) data for February, there is a notable long build-up in FN Feb Futures, reaching 65 percent on a weekly basis, and its PCR_OI is at 0.66, indicating a positive outlook. Aggressive Open Interest (OI) additions are observed in 20900/21200 Call Options, with 0.26 Lakhs and 0.39 Lakhs contracts respectively. On the Put side, the second-highest OI is at 20,200 Put with 0.31 Lakhs contracts.
For intraday trading, the support levels are identified at 20,400, followed by a crucial support level of 20,200 (±50 pts). Resistance is anticipated at the 20800/900 band, followed by 21200 – all referring to spot levels.
"The overall view suggests a probable trading range for the day between 20400 and 20800. A breach below 20400 could lead to the next support level at 20200. Conversely, a fresh upward movement is expected if the resistance at 20900 is overcome," said Patnaik.
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