INSUBCONTINENT EXCLUSIVE:
A dip of the index to 29,500 or slightly below could be bought into, data show
The potential support in case of an unforeseen event is at 28,500
The spot Bank Nifty closed up at 0.7% at 29,596.1, after hitting a fresh high of 29,812.
They built huge positions at the 30,500 call on
Monday, adding 241,900 shares (20 shares make one lot), taking the total open interest (OI) to a provisional 332,960
In the bargain the 30500 call became the out-ofthe-money call with the highest OI
The 29500 call, which held the second highest OI, gave way to the 30500 call.
The 29500 strike saw sellers cover about 37,720 shares
indicating their anticipation of the Bank Nifty surging well past this level, going forward, with the underlying index closing at 29,596
Motilal Oswal Financial Services.
Shorts on the Bank Nifty are trapped and will be forced to close out their residual bearish bets, and this
derivatives head at Axis Securities.
Interestingly, as the index broke past the 29,500 mark, bulls hugely sold the 29500 put, indicating
that would be a good level to buy if the index dips.
The near month option put call ratio (OI) of 1.5 reflects the bullish sentiment
FIIs are tanking up on index futures, having purchased a provisional Rs 828 crore of index futures on Monday.
ICICI BANK ON A ROLLThe
The open interest of the futures contact has risen over the past few days
against these short futures hedges they could be selling front month put options on ICICI Bank.
Assume the cash share rises, their short
futures position will reduce/neutralise their gain but they will earn through erosion of premium of the sold puts
The range for the current month is Rs 380-400 with a breakout of the range looking probable over the next few sessions.
