Five digit figure now to act as a sturdy hurdle: Angel Broking

Views of Ms. Sneha Seth (Derivative Analyst, Angel Broking):

"It is the second consecutive session, when our market witnessed immense selling pressure. During the day, index plunged 144 points due to the broad based sell-off; however, due to some modest recovery in the latter half, Nifty concluded today's session with a cut of 92 points.

In Nifty options front, we witnessed significant OI addition in 9900-10000 call options, followed by some unwinding in 10200 and 10300 strikes. As a result, highest concentration of OI in call option shifted to 10000 strike price. On the flip side, 9700-9850 put options added some fresh positions; while, good amount of short covering was seen in 10000 and 10100 puts. Thus, maximum open interest in put options remains intact at 9900.

Throughout September series, we witnessed good amount of open interest addition, wherein FIIs were net sellers in index futures. In index options too, they formed bearish bets recently by adding fresh index puts and writing call options. The way options activity has shaped up, we believe 10000-10050 may now act as a strong hurdle. Hence, any bounce back beyond 9900 should be an opportunity to go short on index."

Source : Equity Bulls

Keywords