Bears won the fight with bulls in today's session as the Nifty erased its early gains and ended lower for the fifth straight session on March 15. After briefly slipping below the 17,000 mark in the previous session, today the Nifty ended below that mark. Strong selling was seen across fast moving consumer goods, financials and oil and gas names. The Nifty ended the session down 71.10 points or 0.42 percent at 16,972.20. (Blue bars show volume and golden bars open interest (OI)).
2/5
On the options front, put writers shifted to lower 16,900 as the strike price witnessed the maximum accumulation of open interest. Put writers were also active at 16,700-16,850 strike prices as bulls gave in to the pressure from bears. Among call options, 17,100 amassed the maximum call writing followed by 17,000 as bears limited the recovery in the market. "The index has been trading in a declining channel which suggests that the trend is likely to remain weak. On that account, investors should go short as long as the Nifty remains within the range of 16,800-17,100 points," said Ajit Mishra, Vice-President - Technical and Derivatives at Religare Broking. Mishra also suggested investors to add fresh positions only when the index breaks free of the aforementioned zone. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)
3/5
Banks were among the major laggards in today's session. Put writers moved lower as the sectoral index edged lower towards 39,000. Most put writers were active across strike prices between 38,600-39,000. Following the sharp decline, call writers also doubled up at 39,300 which witnessed the maximum addition of fresh positions. "The sectoral index is consistently forming lower bottoms which suggests that more losses are underway. It will not be wise for investors to go short at the current juncture as the setup remains weak. I would suggest investors to wait for a slight recovery towards 39,600-40,000 and then initiate fresh shorts," said Pawan Jaiswal, Head of Research- Technicals and Derivatives at William O'Neil.(Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)
4/5
Motherson Sumi Wiring topped the list of stocks that witnessed strong short buildup as open interest in the counter rose 4.6 percent. Banking stocks like Bank of Baroda, IndusInd Bank, State Bank of India, RBL Bank, Canara Bank, Axis Bank and HDFC Bank were among others that witnessed strong short buildup. 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.)
Long positions were added across Adani Enterprises as open interest rose 2.2 percent. Among other stocks that witnessed fresh long buildup were GMR Infra, Indian Energy Exchange, Adani Ports and Special Economic Zone, and Titan Co. A long build-up is a bullish sign that happens when open interest and volume increase with the rise in share price. (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, put writers shifted to lower 16,900 as the strike price witnessed the maximum accumulation of open interest. Put writers were also active at 16,700-16,850 strike prices as bulls gave in to the pressure from bears. Among call options, 17,100 amassed the maximum call writing followed by 17,000 as bears limited the recovery in the market. "The index has been trading in a declining channel which suggests that the trend is likely to remain weak. On that account, investors should go short as long as the Nifty remains within the range of 16,800-17,100 points," said Ajit Mishra, Vice-President - Technical and Derivatives at Religare Broking. Mishra also suggested investors to add fresh positions only when the index breaks free of the aforementioned zone. (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/2023/03/2-1.png "On the options front, put writers shifted to lower 16,900 as the strike price witnessed the maximum accumulation of open interest. Put writers were also active at 16,700-16,850 strike prices as bulls gave in to the pressure from bears. Among call options, 17,100 amassed the maximum call writing followed by 17,000 as bears limited the recovery in the market. "The index has been trading in a declining channel which suggests that the trend is likely to remain weak. On that account, investors should go short as long as the Nifty remains within the range of 16,800-17,100 points," said Ajit Mishra, Vice-President - Technical and Derivatives at Religare Broking. Mishra also suggested investors to add fresh positions only when the index breaks free of the aforementioned zone. (Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)")
![Banks were among the major laggards in today's session. Put writers moved lower as the sectoral index edged lower towards 39,000. Most put writers were active across strike prices between 38,600-39,000. Following the sharp decline, call writers also doubled up at 39,300 which witnessed the maximum addition of fresh positions. "The sectoral index is consistently forming lower bottoms which suggests that more losses are underway. It will not be wise for investors to go short at the current juncture as the setup remains weak. I would suggest investors to wait for a slight recovery towards 39,600-40,000 and then initiate fresh shorts," said Pawan Jaiswal, Head of Research- Technicals and Derivatives at William O'Neil.(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/2023/03/3-2.png "Banks were among the major laggards in today's session. Put writers moved lower as the sectoral index edged lower towards 39,000. Most put writers were active across strike prices between 38,600-39,000. Following the sharp decline, call writers also doubled up at 39,300 which witnessed the maximum addition of fresh positions. "The sectoral index is consistently forming lower bottoms which suggests that more losses are underway. It will not be wise for investors to go short at the current juncture as the setup remains weak. I would suggest investors to wait for a slight recovery towards 39,600-40,000 and then initiate fresh shorts," said Pawan Jaiswal, Head of Research- Technicals and Derivatives at William O'Neil.(Bars reflect change in OI during the day. Red bars show call option OI and green put option OI.)")
