8:50 AM
Unknown
The Nifty traded in a broad range of more than 100 points after the range-bound sessions. The current month open interest has increased by 3.57% and 6.8 lakh in absolute terms with decrease in basis as compared to the previous trading session. This implies the addition of fresh short positions. In the options segment, the maximum open interest for the put option is at 5300 strike, which is because of the put writing and seems to be a shortterm support. The addition in fresh open interest is observed at 5,400 strike and is because of the call writing activity and seems to be a nearterm resistance. The current month open interest PCR has gone below 1, first time in this contract, which implies that the market is in a huge-selling pressure. On the sectoral front, fresh shorts have been witnessed in Index and Banking sectors.
The money 5300 put implied volatility has increased above the 19.50 level. It indicates panic selling. I expect that short-covering will take place once the Nifty crosses the 5340 level. While posting SGX Nifty is trading at -138. As per the data,I expect the short-term support at 5180 levels