F&O Manual: Exuberance in Indian equity indices; analysts maintain moderately bullish stance on Nifty

Indian equity benchmark indices have been showcasing post-festivities exuberance, with all sectors trading in the green. Notably, metal, information technology, oil & gas, and realty sectors have witnessed gains ranging from 1-3 percent. Positive global cues, such as a softer-than-expected inflation print in the US, are also contributing to the prevailing optimism.

At 11am, the Sensex was up 589.56 points or 0.91 percent at 65,523.43, and the Nifty was up 184.70 points or 0.95 percent at 19,628.20. About 2,079 shares advanced, 1,033 shares declined, and 110 shares unchanged.

Within Nifty, the 19,500 Call strike boasts a noteworthy open interest of 100 lakh shares. On the Put side, the 19,400 strike holds substantial open interest, amounting to 77 lakh shares.

The options data indicates substantial put writing at the 19,500 and 19,550 strikes for Nifty, signifying support for the day. A significant straddle position has taken shape at the 19,700 level, with critical resistance observed at the 19,850 and 19,900 strikes.

According to Prabhudas Lilladher, “The index has successfully held above the pivotal 19400 zone, a crucial factor in maintaining the current bias and sentiment. Once a decisive move beyond the 19,650 zone is established, a clear directional shift with conviction is anticipated. Support for the day is identified at 19,400, while resistance is noted at 19,850.”

Among individual stocks, MCX, Oberoi Realty, and Mphasis witnessed long built-up, while Manappuram, ICICI Prudential Life, and PEL display short built-up positions.

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