High Call OI indicates bullish bias in narrow range

The resistance and support levels moved up by 500 points each to 25,500CE and 24,500PE, respectively. The 25,500CE has highest Call OI followed by 26,000/ 25,200/24,800/ 24,600/24,500/ 24,900/ 25,200/ 25,600/ 25,700 strikes, while 25,000/ 24,700/ 24,500/ 24,900/ 25,600/ 25,700 strikes recorded moderate to heavy addition of Call OI. Minute drop in Call OI is seen at deep ITM strikes.

Coming to the Put side, the maximum Put OI is seen at 23,500PE followed by 23,000/ 24,000/ 24,100/ 23,800/ 23,600/ 23,500/ 22,800 strikes. Further, 20,150/21,000/ 21,650/ 21,550/ 21,100 strikes witnessed modest build-up of Put OI. Moderate fall visible in Put OI at select Put OTM strikes.

ATM Put strikes recorded high Call writing when compared to Put strikes. It’s indicating an expected resistance at higher levels. On the higher side, the only meaningful Call base is placed at 23,500 strike, which is likely to remain an important hurdle.

BSE Sensex closed the week ended July 19, 2024, at 80,604.65 points, a net surge of 85.31 points or 0.10 per cent, from the previous week’s (July 12) closing of 80,519.34 points. For the week, NSE Nifty also rose by 28.75 points or 0.11 per cent to 24,530.90 points from 24,502.15 points a week ago.

India VIX rose 2.17 per cent to 14.82 level. As Q1 results began, analysts forecast that volatility may move up further from current level and may move beyond 15 level in the coming sessions.

Despite some cool-off in positions, FIIs’ net longs in the index futures fell to nearly 3.2 lakh contracts from 4 lakh contracts. However, FIIs holding net shorts in retail space. Resumption of cash-based buying from FIIs, major declines seems unlikely. FIIs holding net longs of over 6.1 lakh contracts in the stock futures segment.

FIIs remained net buyers last week as well and bought more than Rs4,200 crore. After remaining largely net sellers in the first six months this year, FIIs bought nearly Rs30,000 crore in the second part of June and nearly Rs15,000 crore in July so far. Analysts predict that ongoing positive bias will continue in the near term. On the other hand, domestic institutions remained on the sidelines and bought just Rs32 crore last week.

Bank Nifty

NSE’s banking index closed the week at 52,265.60 points, higher by 13.30 points or 0.02 per cent from the previous week’s closing of 52,278.90 points. The latest options data suggesting profit booking at higher levels and move below 52,000 may extend the weakness.