Apart from buying a provisional 704 crore shares, FIIs net purchased 22,560 index futures contracts Tuesday, up from 3,370 contracts a day earlier. Option sellers in Nifty covered shorts big time, resulting in the weekly Nifty open interest put-call ratio rising to 1.09 from 0.6 on Monday.
Getty ImagesThe weekly Bank Nifty options also witnessed some short covering, resulting in the PCR rising to 0.79 from 0.59 on Monday.
Mumbai: Short covering in weekly index options and addition of fresh bullish bets on index futures — Nifty and to some extent Bank Nifty — by FIIs fuelled Tuesday’s 200-point rally to 11,095. Weekly options data hint that the Nifty could immediately test the 11,200 resistance before moving higher, supported by heavyweights like Reliance Industries and HDFC Bank.
Apart from buying a provisional 704 crore shares, FIIs net purchased 22,560 index futures contracts Tuesday, up from 3,370 contracts a day earlier. Option sellers in Nifty covered shorts big time, resulting in the weekly Nifty open interest put-call ratio rising to 1.09 from 0.6 on Monday.
Analysts like Rohit Srivastava of IndiaCharts and Chandan Taparia of Motilal Oswal Financial Services estimate support at 10,880 and resistance at 11,400-11,500 for August 27 expiry.
The weekly Bank Nifty options also witnessed some short covering, resulting in the PCR rising to 0.79 from 0.59 on Monday. The front month Bank Nifty futures witnessed OI dip 10.5 per cent, driving the index up 1.8 per cent, ahead of the RBI policy decision on August 6.
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