F&O Manual: Even as bulls charge ahead, struggle lies beyond 19,200 for Nifty

Set up in Bank Nifty was pretty bullish, traders said, even though heavyweights such as ICICI Bank and SBI did not participate in the rally much.

The market continued its rally for another day on June 30. The Nifty is on the path to ending the month on a positive note and a fresh closing high unless a late sell-off occurs.

The Nifty 50 index added 142 points as of 12 noon to 19,114. The Bank Nifty was up 0.75 percent to 44,658.90.

Weekly option data shows put writers have dominated the day’s trade with 19000 and 19100 emerging as fresh support levels for the index. However, some supply pressure at 19,100 and 19,200 is keeping the optimism in check.

Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.

“The Nifty Index will slow its speed of rally beyond 19,200 and face some resistance at 19,500 owing to the highest call writers being present,” said Rahul K Ghose, Founder & CEO of Hedged.

The set-up in Bank Nifty was pretty bullish, traders said, even though heavyweights such as ICICI Bank and SBI did not participate in the rally much.

Among other stocks, asset management names saw a heavy long buildup owing to positive commentary from SEBI that has deferred the implementation of changes in how the total expense ratio is structured. Financials, meanwhile, continued to be on bullish traders’ radar with Indiabulls Housing Finance and m&M Financial Services at the vanguard.

MCX, understandably, was among the most beaten-down F&O stocks as its profits are likely to be much lower this year thanks to costly delays in the deployment of new trading platforms. Indus Towers and Polycab India also saw a short buildup.

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