India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Range bound trade to prevail
|
View: Overall data indicates the Nifty to trade in a range. Lack of certainty is prevailing on the direction of the index. Strong support is placed at around the 5500 levels while resistance is placed at around the 5670-5700 levels.
Nifty July futures accumulated maximum open interest of 22.71 million shares. The figures stand lowest in last 5 series. A similar kind of accumulation was seen in the January series wherein the maximum open interest stood at 22.62 million shares. Below-average accumulation indicates lack of certainty prevailing on the direction of the index.
Among Nifty July put options, maximum open interest is concentrated at 5500 strike with an open interest of 9.96 million shares. It is followed by an accumulation in 5400 strike with an open interest of 7.33 million shares. With a big difference prevailing among the top two strikes, we believe the index has a strong support placed at around the 5500 levels. Fresh selling is likely to prevail if the Nifty breaks below 5500 levels.
Among Nifty July call options, maximum open interest is concentrated at 5800 strike with an open interest of 8.66 million shares. Accumulation in 5700 strike stands tad below at 8.23 million shares. We expect maximum open interest among Nifty call options to shift downward to 5700 strike from 5800 strike suggesting strong resistance to prevail at around the 5670-5700 levels.
No comments:
Post a Comment