Markets finally come out of the consolidation to give new strength for scaling new all-time highs.

Nifty rollovers seen at 82%, which is higher than the past six months’ average of 76% and on the Weekly expiry option, PE writers actively added their positions at 18300PE – over 60 lakh shares OI, followed by 18400PE – overall 40 lakh shares.

Aggressive fresh additions saw 18300PE and 18400PE – each with 45 lakh and 30 lakh shares OI, respectively. CE writers’ exposure lies at 18500CE and 19000CE- each more than 30 lakhs shares OI, followed by 19300CE/19500CE also adding very rapid fresh positions. PCR_OI at 18,400 is comfortably above 1, which now gives a lot of confidence to the bulls for new highs to be seen.

Option Strategy recommendation: A fresh breakout seen on the index, playing Vanilla options is recommended or bull call spread can also be done as resistance near previous all time highs can be expected.

Series expiry: BUY 18500CE and SELL 18700CE.

Bank Nifty rolls seen at 88%, which is also higher than the average of past 6 months, with option chain reflecting on PE writers standing tall at 43000 strike – overall 15 lakh shares OI and fresh exposure of 13 lakh shares OI. CE writers congestion lies at 43500 – more than 10 lakh shares, however the max fresh additions seen at 45000CE, which now hints a potential upside of nearly 5% for the index.

Sector Updates:

On a weekly basis, a mixed bag of participation was seen, with Technology, Infra, Oil & Gas, Banking, and Metals set to outperform in the coming week.

Stock Updates:

BUY

: CMP 1435, TGT 1485/1530, SL 1395.

SELL SUNTV : CMP 490, TGT 470/460, SL 505.

Shilpa Rout, Derivatives Lead Analyst, Prabhudas Lilladher

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By Dipak

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