F&O Manual: String momentum brings bulls bank on Street, traders see Nifty moving to 18,000

The market momentum was robust as Nifty rose about 1 percent to climb to 17,750. The index is now close to the resistance level of 17,775, however, some traders said that may not be a big hurdle.

On the options front, 17,800 is the battle zone as it is seeing both call and put writing. Meanwhile, the 17,700 level is emerging as a major support point as it has seen heavy put writing. Call writers have also shifted their positions higher.

Bars reflect changes in open interest (OI) during the day. The red bars show call option OI and the green put option OI.

“I am bullish on both Bank Nifty and Nifty,” said Ankush Bajaj, a derivative trader and a research analyst. “I see follow through and Nifty may touch the 18,000 level going by the current momentum.”

Nifty Bank also advanced by 1 percent to the 41,632 level. Most traders have taken positions around 41,500 and 41,600 levels.

Among stocks, Mahanagar Gas saw a long buildup – a scenario when price and open interest rise in tandem. Samvardhana Motherson, Adani Ports, Birlasoft, Ambuja Cement and Torrent Power were among those that saw a long buildup as well.

Among the scrips that saw short build-up – a rise in open interest but a drop in prices – were Britannia, Cipla, Godrej Consumer and Tata Chemicals.

Manish Shah, another research analyst, said he is seeing buying opportunities in IDFC First Bank and Bank of Baroda.

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