Nifty may open on negative note: ICICIdirect

ICICIdirect's Derivative Report:

Nifty

Subdued results from Infosys triggered profit taking in the Nifty as the IT index ended over 2.5 percent lower. The Nifty ended at the lowest point of the day as well as week with a weak breadth and two stocks declining for one that rose. However, India VIX continued to remain low at 11.6 percent suggesting the current decline is profit booking in nature.

FIIs sold Rs 408 crore while DIIs bought Rs 66 crore in the cash segment. FIIs bought Rs 147 crore in index futures and bought Rs 1984 crore in index options. In stock futures they sold Rs 557 crore.

The highest Put base remains at the 9000 strike with 57 lakh shares while the highest Call base has shifted downwards to 9300 strike with 50 lakh shares. The 9200 and 9300 Call saw addition of more than 5 lakh shares each while Put options saw closure of positions.

Nifty Bank

Nifty Bank remained sideways despite profit booking as both the PSU and private banking space lend support to the index and witness a flat weekly settlement. The continuous writing at 21500 Put strike makes it an important support in the near term. We remain positive in Nifty Bank till it holds above 21500.

Nifty Future: The Nifty is likely to open marginally negative on the back of negative Asian cues. Sell Nifty in the range of 9200-9210 for targets of 9150-9130, stop loss: 9230.

Nifty Bank Future: Nifty Bank remained sideways despite profit booking as both the PSU and private banking space lend support to the index and witness a flat weekly settlement. The continuous writing at 21500 Put strike makes it an important support in the near term. We remain positive in Nifty Bank till it holds above 21500. Buy Nifty Bank in the range of 21550-21600, targets: 21700-21800, stop loss: 21400.

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