F&O Manual | Nifty may move to 19,850 if it holds above 19,700; put writers to be dominant

The Indian equity benchmarks opened marginally higher amid positive global cues, with American tech giants pushing Nasdaq to a 22-month high while the US 10-year bond fell to a three-month low of 4.4 percent. Traders and investors now need to watch if the Nifty holds above 19,700 to leap towards 19,850 and beyond.

At 11 am, the Sensex was up 249.31 points, or 0.38 percent, at 65,904.46 and the Nifty was up 80.50 points, or 0.41 percent, at 19,774.50. About 1,908 shares advanced, 1,155 declined and 107 remained unchanged.

Nifty derivatives set up:

Nifty futures open interest decreases by 4.18 percent to 1.19 crore

Nifty Put/Call Ratio falls from 1.02 to 0.91.

The volatility index, India VIX,  rises 2.68 percent from 11.83 to 12.14.

Volatility was slightly higher but the overall market traded within a broader range.

On the weekly front, the maximum call open interest (OI) is at 19,800 then 19,900 strike, while the maximum put OI is at 19700 then 19600 strike.
Call writing is observed at 19,800, then 19750 strike, while Put writing is at 19,600 then 19,550 strike.

The options data suggests that put writers will be dominant for the day. As per Motilal Oswal Financial Services, “Nifty’s immediate support is at 19,650 then 19,550 zones, while resistance is at 19,850 then 20,000 zones. Now it has to hold above 19,700 zones, for an up move towards 19,850 then 20,000 zones, whereas supports are placed at 19,650 then 19,550 zones.”

Among individual stocks, a long build-up was seen in Adani Enterprises, Oberoi Realty and Hindalco, while ONGC, Idea and PFC saw a short build-up.

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