February 13, 2012 / 10:21 IST
The Nifty continues its upward journey in the February expiry, led by sectors such as banking, oil & gas and metals. With good FII inflows, better-than-expected earnings results of certain heavy weight companies and appreciation of the Indian rupee, the Nifty has gained over 3% since the start of the February expiry. (CMP: 5,345 as on 2nd Feb). Year-to-date (that is since January) it is already up 14%.
The Bank Nifty, which witnessed significant long positions, has nearly added 19.2% OI in the February series and is already up 3.3%.On the PCR OI front for the Nifty, the continuous increase in its value from 1.28 to the current level of 1.4 (as on 2nd February), suggests an increase in the Put activity, which is expected to be dominated by sellers. This clearly indicates that the market is likely to remain bullish.On the Options side, aggressive Put writing has been seen at strikes 4,900, 5,000 and 5,100, and now even at 5,200 since the start of the February expiry. On the other hand, a forward shift in the 5,200 Call to 5,400 Call has been observed. The 5,400 call has witnessed a significant addition in OI and, hence, it is likely to provide a strong resistance to the market.Also, Volatility Index (VIX) on the Options front has been increasing despite the up-move in the market. With healthy rollovers in the February series and increasing volatility, oscillating movements are likely to continue in the market.FIIs have recently pumped in a fair amount of liquidity into the Indian markets, taking the Nifty closer to its 6-month high of 5,434 (4th Aug
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