F&O Manual: Bulls make another dash towards all time high but stumble at hurdles

Weekly option data shows traders have written puts at 18,700 through 18800 strikes as they push for an all time high level of 18,888.

Buying in the stock market returned on June 16 amid positivity in global markets and foreign investors turning bullish. However, negative catalysts like prediction of a bleak monsoon and a struggling China could push investors into a caution mode and fuel selling going ahead.

As of 10.40 am, the Nifty 50 index traded with gains of 84 points or 0.45 percent to 18,772.10. The Nifty Bank advanced 0.71 percent to 43,749.90.

Weekly option data shows traders have written puts at 18,700 through 18800 strikes as they push for an all time high level of 18,888. However, some additional call writing at 18,800 is acting as a hurdle for the index. Calls have also been written at 18850 levels.

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

“For Nifty, the make-or-break support is seen at 18553 mark, while any upward march is possible only once the index breaches its all-time high mark of 18,888 mark,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Bank Nifty has also seen long trades with puts being written at 43500 through 43800. However, the index will make a red weekly candle.

“Currently I am long on Bank Nifty,” said Ankush Bajaj, a Chhattisgarh-based trader. He sees the index struggling to reach fresh all time highs for the time being.

Among individual stocks, traders were seen taking bullish bets on Ashok Leyland, followed by HDFC Life Insurance and Bajaj Finserv. Meanwhile, short covering was seen in financial names such as Manappuram Finance and LIC Housing Finance.

Piramal Enterprises, Bajaj Auto and Godrej Consumer Products saw short build up.

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