F&O Manual: Nifty struggles for another day in a narrow range, traders still optimistic

Realty stocks were among the day’s biggest gainers followed by pharma and PSU Bank.

The market remained range bound so far on June 1 amid palpable nervousness even as the US House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling. The bill now be sent to the Senate for further approval.

The Nifty 50 index added mere 0.13 percent or 23.65 points to trade at 18,558.05 as of 11.40 am. Nifty Bank, meanwhile, was down 0.09 percent to 44,087.70.

Weekly option data shows 18,600 has the most numbers of call writing, meaning it is the biggest hurdle while 18,500 is a strong support. 18550 has seen Straddle trades, which is a neutral strategy. In the next week’s contracts, the situation was largely similar, signalling a narrow trading range for days to come.

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

However, traders have expressed confidence that the Nifty will likely hit all time high level during this monthly series. Rajesh Sriwastava, a Bengaluru-based derivatives trader, said it is not advised to short the market for intraday.

“Confirmation of strength is only if the Nifty moves above 18663 mark, while make-or-break support for the index is at 18327, while support for Bank Nifty is seen at 43721,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Realty stocks were among the day’s biggest gainers followed by pharma and PSU Bank.

Among individual stocks, traders were seen taking bullish best on pharma and healthcare names such as Apollo Hospitals, Laurus Labs and Divi’s Labs. RBL Bank also saw heavy long build up, which is a bullish sign characterised by rise in open interest and stock price.

Coal India continued to be under pressure and saw traders accumulating short positions. City gas suppliers Indraprastha Gas and Gujarat Gas also saw short build up, which is a negative sign.

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