The benchmark index started-off the week on a very strong note; above the immediate hurdle of 10840. Post some range bound move, momentum picked up in the latter half to bring index near 10900 mark. In F&O segment, we saw addition of some fresh long positions in Nifty as well as BankNifty. As far as individual counters are concerned, RELIANCE extended its gains and HDFC twins too were adding decent support to market. On the opposite side, IT giant INFY and KOTAKBANK were showing weakness.
In Nifty options front, we continued seeing fresh writing in index ATM puts along with unwinding in OTM call options. 10800 and 10900 put options added good amount of shorts; whereas, good amount of unwinding took place in 11000 call options, which holds maximum open interest concentration. The volatility index also plunged to 13-weeks low (14.54%), which is a good indication for Bulls. Considering the overall F&O data, we expect continuation of this rally towards 11000-11100; hence, traders are advised trading with a positive bias going ahead.”