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F&O Manual: Buy Nifty 18,900 calls on dips, say analysts
Stock market today: Bank Nifty settled with a cut of about 0.5 percent at 42,167.55. All out-of-the-money strikes saw activity with the highest call activity at 42,500 and call activity at 42,000.
1/6
The market remained rangebound for yet another session on January 16. The Nifty50 index fell about 62 points or 0.34 percent to 17,894.85. The Nifty futures contract also fell 0.5 percent but traded at a slight premium to the underlying. A long negative candle was formed on the daily charts at the highs, which indicates a counterattack of bulls after the upside bounce of Friday. (Blue bars show volume and golden bars open interest or OI.)
2/6
On the options front, for the January 19 contract, 18,000 and 18,100 saw an accumulation of calls as they emerged as new resistance levels. “It is in the range. It’s better not to trade but if you want you can buy 17,900 calls if Nifty comes to 17,820 tomorrow,” said Nandish Shah, derivatives analyst at HDFC Securities. (Bars reflect the change in OI during the day. Red bars show call option OI and green put option OI.)
3/6
![Bank Nifty also closed with a cut of about 0.5 percent at 42,167.55. All out of the money strikes saw activity with highest call activity at 42,500 and call activity at 42000. “The index is still in a sell-on-rise mode, and if it breaks through the 42,000 support level, we will see additional selling pressure toward the 41,700–41,500 zone," said Kunal Shah, Senior Technical Analyst at LKP Securities. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)](https://images.moneycontrol.com/static-mcnews/2023/01/3-bnifty-3.png "Bank Nifty also closed with a cut of about 0.5 percent at 42,167.55. All out of the money strikes saw activity with highest call activity at 42,500 and call activity at 42000. “The index is still in a sell-on-rise mode, and if it breaks through the 42,000 support level, we will see additional selling pressure toward the 41,700–41,500 zone," said Kunal Shah, Senior Technical Analyst at LKP Securities. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)")
Bank Nifty also closed with a cut of about 0.5 percent at 42,167.55. All out-of-the-money strikes saw activity with the highest call activity at 42,500 and call activity at 42,000. “The index is still in a sell-on-rise mode, and if it breaks through the 42,000 support level, we will see additional selling pressure toward the 41,700–41,500 zone," said Kunal Shah, Senior Technical Analyst at LKP Securities. (Bars reflect a change in OI during the day. Red bars show call option OI and green put option OI.)
4/6
PNB saw a massive long buildup. A long build-up is a bullish sign that happens when open interest and volume increase with the rise in share price. Aurobindo Pharma and L&T Finance Holdings were others that saw long buildup. (Bars reflect a change in OI during the day. Red bars show call option OI and green put option OI.)
5/6
PVR, which saw a rating downgrade by Kotak Institutional Securities, massive short buildup as open interest in the counter surged 22 percent, the highest in the quarter. The short build-up is a bearish sign that takes place when the price of a stock falls, along with high open interest and volume. (Bars reflect a change in OI during the day. Red bars show call option OI and green put option OI.)
6/6
Astral, Adani Enterprises, Rain Industries and HDFC AMC were others that saw a short buildup. (Numbers reflect a change in futures prices.)
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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