F&O Manual: Bulls carry on with their momentum; realty stocks in limelight

Among individual stocks, DLF that came out with earnings last week saw heavy long buildup.

Bulls were seen consolidating their position on May 15 as benchmark indices inched close to their all-time high levels. The gains are coming thanks to some positive surprises in Q4 earnings numbers and falling bond yields. Buying by foreign investors has also lifted the mood of the market.

As of 11.30 am, the NSE Nifty traded up 100 points or 0.55 percent at 18,415. The Bank Nifty also rose 0.57 percent to climb over 44,000 levels.

Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform, said for the monthly expiry of May, the range remains between 18000 and 18500 and the Index will not find it very easy to sustain over the 18500 mark.

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

“There has to be a decisive break over 18,550 for this level to get taken out. For this week as well the texture remains buy on dips and any fall below 18200 to the 18000 level should be considered as a buying opportunity,” he said.

The weekly options data, meanwhile, shows call unwinding at lower strikes while heavy put writing has been seen at the 18,300-18,400 zone, which puts the market in a good position for further gains. Call writers were largely muted as trades have not been favourable for them.

Among individual stocks, DLF that came out with earnings last week saw a heavy long buildup. Bulls were also seen accumulating positions in Colgate Palmolive, Godrej Properties and Oberoi Realty, making the realty sector the pick of the day.

Short covering, also a bullish sign that signals a turnaround, was seen in Power Finance Corporation, Dabur India and Gujarat Narmada Fertilisers. The short buildup was seen in Adani Enterprises and India Energy Exchange.

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