Derivatives write-up by Ms. Sneha Seth (Derivatives Analyst, Angel Broking):
"Post Friday's strong recovery, our market started off the week on a stronger note. In the initial part of the day, we saw extension of upmove above 10800 but due to some profit-booking at higher levels index concluded the session with the gains of 0.41%.
In Index futures front, we saw addition of fresh long positions in Nifty; whereas OI activity in BankNifty remained muted. Meanwhile, we saw some unwinding in OTM call strike 10900; hinting further upside scope. On the other side, fresh positions were formed in 10600-10900 put options. Maximum open interest concentration now stands at 11000 call and 10500 put option.
Since the beginning of January series, we are witnessing fresh long formation in Nifty futures and decent amount of longs rolled over are also intact in the system. However, stronger hands continued curbing liquidity through equities market and also added bearish bets in F&O segment. At present, 10600-10650 is an immediate base for the index; whereas, 10900-10950 shall act as a hurdle."