F&O Manual: Nifty struggles to find a way as bears put their foot down

Among individual stocks, Aarti Industries was the top loser among F&O stocks as bears were seen accumulating positions in the stock.

Choppiness in the market kept the benchmark indices subdued on May 10 as traders have grown nervous ahead of the US inflation data that is set to be released. This, by extension, will reveal what stance will the US Federal Reserve take in the next policy meeting.

The Nifty 50 index was down 0.04 percent or 6.50 points to 18,259.45 as of 11 am. The Bank Nifty also traded with cuts of 0.27 percent to 43,082.80.

Heavy call writing was seen at 18,250 and 18,300 strikes while 18,200 has seen heavy put writing. This signifies that the 18,200-18,300 zone is the battle zone and the range for the day. The Nifty will likely stay in this range.

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

Analysts say that even if there is a breakout, a struggle will follow at higher levels.

“US inflation data for April will be keenly focused as this would provide some indication about the Fed’s next course of action on the rate front. Technically, Nifty may struggle to find acceptance above the 18350 mark,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Among individual stocks, Aarti Industries was the top loser among F&O stocks as bears were seen accumulating positions in the stock. Apollo Tyres, PNB, Rain Industries were others that saw short buildup, which is a bearish sign.

On the other hand, India Cement saw a long buildup as bulls took large positions in the stock. Pidilite Industries, Siemens and IndusInd Bank also saw long buildups.

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