Banking index attracting huge longs: Angel Broking

Derivatives view by Mrs. Sneha Seth (Derivatives Analyst, Angel Broking):

"We started-off the week with an upside gap; but, these gains were short lived as we saw decent profit booking in the initial hour to wipe-off all the early opening gains. However, 11550 once again acted as a demand zone and smart recovery brought index above 11700 mark. In last half an hour, due to some unwinding Nifty concluded the session 27 points higher. Today, we witnessed a stellar move in banking counters which supported the benchmark from the selloff seen in RELIANCE. Finally, BankNifty surpassed the hurdle around 24800 and concluded the day with the handsome gains of 4%.

In derivatives space, banking index added huge longs and short covering was seen in case of Nifty. In options front, some build-up was seen in 11800-11950 followed by unwinding in 11600 and 11700. On the flip side, writing was seen in 11300 and 11500 put strikes. Maximum open interest concentration for this weekly series is placed at 12000 call and 11000 put options. Last series, we saw good amount of longs in Nifty which has been rolled too. In case of BankNifty, we hardly saw any open interest addition series on series but today's strong upmove along with longs is a good indicating. Considering the above data points, we remain optimistic on the market and hence expect follow-up buying in coming trading session. At present, 11500-11550 is an immediate support zone; whereas, resistance is placed around 12000 mark."

Source : Equity Bulls

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