Weekly expiry option for Nifty witnesses PE writers actively adding their positions at 18,600PE – over 56 lakh shares OI, with fresh additions of more than 45 lakh shares. CE writers’ exposure lies at 18,600CE /19,500CE – more than 60 lakhs and 57 lakhs shares OI, respectively. PCR OI at 18,600 is nearly 1, which is crucial to monitor, as an increase here will see upside momentum resuming again.
Bank Nifty option chain reflects PE writers standing tall at 43,000/43,500 strikes — overall 14 and 13 lakh shares OI, respectively, and fresh exposure of 11 lakh shares OI at 43,500 level. CE writers congestion lies at 43,600, with max exposure at 45,000 strike — more than 11 lakh shares OI. Thus, the data reflects on a good upside move for the index, once it sustains above 43,650/43,700 zones.
On a weekly basis, strong upside moves were witnessed in cement, banking and financials, with metals all set to outperform in the coming days.
Buy : CMP Rs 750, TGT Rs 775/784, SL Rs735.
Sell IPCA Lab: CMP Rs 858 , TGT Rs 830/815, SL 875.
The author is Derivatives Lead Analyst, Prabhudas Lilladher
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)