· Market would be trading between 5,200 and 5,400 in April Series. Traders can also initiate Long positions when Nifty is closer to 5,200 and Short sell near 5,400.
Implications: Premium turning into discount, open interest decrease, Volatility increase and weak put activity combined together implies profit booking at higher levels.
Option Analysis
· Call Writing: Fresh writing of 17.7 lacs shares and 7.5 lacs shares at 5,300 and 5,400 strike prices respectively. We believe 5,300 to act as intermediate resistance and 5,400 for April series on account of major activity taking place and concentration of 74.4 lacs.
· Put Writing: We have observed weak activity towards Put options after consecutive 2 weeks of strong writing. Major shedding of open interest was seen at 5,400 of 2.3 lacs shares. So, we expect markets to take strong support at 5,200 for intermediate time and April series
Implications: Positive sentiments in the market came to an end after 2 weeks of upward rally. So, We see further downward pressure till 5,200. The range for the April Series to settled between 5,200 and 5,400.
FIIs and DIIs activity in capital market segment
· FIIs were net buyers of Rs 62 crore with Gross buyers of Rs 2,115 crore and Gross Sellers of Rs 2,052 crore.
· DIIs were net sellers of Rs 93 crore with Gross buyers of Rs 1,200 crore and Gross sellers of Rs 1,294 crore.
o Long @ 1246 for a target of 1265; stop loss at 1242
1. Day high of 1269.8 completing our target of 1265
· DLF
o Long @ 331 for a target of 340; stop loss at 328
1. Day high of 345 completing our target of 340
· EKC
o Long @ 129 for a target of 133; stop loss at 125
1. Day high of 131.5 before closing at 126.7; stop loss not hit
Please hedge these longs with a Nifty Put maybe a Nifty 5500PE @ 144 for a target 152 stop loss at 132.
Nifty 5500PE completed our target with a day high of 223.
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