A breather finally made its way in the market as the Nifty managed to eke out marginal gains on March 16. Marking an end to a five-day losing streak, the Nifty ended tad higher today on the back of buying from lower levels despite initial jitters. Buying across power, oil & gas, FMCG and pharma counters supported the recovery in the market today. The Nifty settled the day at 16,985.60, up 13.40 points, or 0.08 percent from the previous close. (Blue bars show volume and golden bars open interest (OI)).
2/5
On the options front, heavy call writing was seen at 17,000 as bears tried to restrict the recovery in the market. Bulls also defended by heavily writing put options at 16,950. Going by the setup it looks like the Nifty will consolidate in a range of 16,800-17,200 in the coming sessions as there are plenty of shorts in the system that will prevent any substantial recovery," said Rajesh Palviya, Technical & Derivative Research Head at Axis Securities. Amidst the uncertainty, Palviya also suggested investors to wait for a slight pullback towards 17,100 to add fresh short positions as the index has already slipped into an oversold zone at the current levels. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)
3/5
As for Bank Nifty, strong put writing was seen at 39,000 strikes while largest accumulation of call writers was at 39,200. Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform suggests investors to initiate cross calendar spreads on Bank Nifty with the 39,000 and 38,500 strikes of April 27 and April 6 expiry, respectively, once the sectoral index crosses 39,400. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)
4/5
Zee Entertainment Enterprises saw the maximum buildup of long positions as open interest in the counter zoomed 6.1 percent coupled with a sharp upside in the cash market. The news of the company agreeing to settle dues with IndusInd Bank in a bid to stop insolvency proceedings and get a go ahead for its merger with Sony Pictures cheered investors. A long build-up is a bullish sign that happens when open interest and volume increase with the rise in share price. Other counters that witnessed long builups wee ICICI Prudential, BPCL, Ambuja Cements, Aurobindo Pharma, Asian Paints and Titan. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)
Hindalco Industries witnessed heavy short buildup as traders turned bearish on the overall metal pack due to a fall in global base metal prices. Open interest in the counter shot up 19.3 percent while the stock slumped over 5 percent in the cash market. Other metal names such as Jindal steel and Power, NMDC, Tata Steel, NMDC, SAIL and JSE Steel, also witnessed strong addition of short positions. 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 change in OI during the day. Red bars show call option OI and green put option OI.) 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.
![On the options front, heavy call writing was seen at 17,000 as bears tried to restrict the recovery in the market. Bears also defended by heavily writing put options at 16,950. Going by the setup it looks like the Nifty will consolidate in a range of 16,800-17,000 in the coming sessions as there are plenty of shorts in the system that will prevent any substantial recovery," said Rajesh Palviya, Technical & Derivative Research Head at Axis Securities. Amidst the uncertainty, Palviya also suggested investors to wait for a slight pullback towards 17,100 to add fresh short positions as the index has already slipped into an oversold zone at the current levels. (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/2023/03/2-3.png "On the options front, heavy call writing was seen at 17,000 as bears tried to restrict the recovery in the market. Bears also defended by heavily writing put options at 16,950. Going by the setup it looks like the Nifty will consolidate in a range of 16,800-17,000 in the coming sessions as there are plenty of shorts in the system that will prevent any substantial recovery," said Rajesh Palviya, Technical & Derivative Research Head at Axis Securities. Amidst the uncertainty, Palviya also suggested investors to wait for a slight pullback towards 17,100 to add fresh short positions as the index has already slipped into an oversold zone at the current levels. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)")
