Derivative View for Weekly Expiry – December 02, 2021
December 02 2021 | Reading Time: 5 Minutes
Indian benchmark indices may open on a flat note today. At 8:15 am IST, SGX Nifty Futures were trading at 17,182, compared with Nifty’s close of 17,167 yesterday, indicating a muted opening for the bourses.
Nifty Futures – LTP 17,221.90
Yesterday, Nifty gapped higher and maintained its positive momentum. There was volatility as Nifty moved above 17,200 and then dropped more than 120 points. However, in the last hour, the index regained momentum and closed more than 1% higher. We have changed the market status to a Rally Attempt as Nifty managed to stay above its recent low (16,782) for three consecutive sessions. On the sectoral front, barring Nifty Pharma (-1.6%), all indices closed higher. Nifty Metal, Auto, Financial Service, Banks, and Realty closed 1.3–2.3% higher.
On the options data front, PCR for weekly contracts expiring December 2 stands at 1.29. From the OI data for weekly contracts expiring on December 2, maximum Call OI built up was seen for 17,500 strike price, followed by 17,600 strike price, which amounts to 176.93 lakh contracts and 101.45 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 16,500 strike price, followed by 17,000 strike price, which amounts to 126.43 lakh contracts and 119.91 lakh contracts, respectively.
After considering the above points, Nifty is currently hovering around its 100 DMA with a negative bias, which is placed at 17,139. We expect sustainable trading below this level may turn more volatile and open a new downside window. However, some bounce back cannot be denied if it manages to hold above its 100-DMA. From weekly expiry perspective, index may remain positive if index manages to close above 17,150–17,180 range and in such case index may move to 17,300–17,350.
BankNifty Futures: LTP – 37,441
Bank Nifty has been in a downtrend since last week of October and forming lower low lower high price formation on the daily chart. On November 30, it opened gap down and touched low of 35,300. It has formed an inverted hammer candlestick pattern with a long upper shadow followed by a bullish candle on the daily chart. The momentum indicator RSI has touched the oversold zone and MACD is trending below zero line.
On the options data front, PCR for contracts expiring December 2 stands at 0.85. From the OI data perspective for weekly contracts expiring on December 2, maximum Call OI built up was seen for 37,000 strike price, followed by 38,000 strike price, which amounts to 86.03 lakh contracts and 75.65 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 36,000 strike price, followed by 35,000 strike price, which amounts to 77.28 lakh contracts and 58.48 lakh contracts, respectively.
After considering the above technical parameters and options data, this major sectoral index is trading with a negative bias. Currently, pullback trade cannot be denied. From weekly expiry prospective, sustainable trending above 36,200 may turn positive.
Bullish setup in stocks such as Vodafone Idea , Tech Mahindra, Power Grid Corp.Of India, among others.
Bearish setup in stocks Alkem Laboratories, Dr. Reddy's Laboratories, Berger Paints India, ACC, PVR such as among others.
Nifty Futures – LTP 17,221.90
Yesterday, Nifty gapped higher and maintained its positive momentum. There was volatility as Nifty moved above 17,200 and then dropped more than 120 points. However, in the last hour, the index regained momentum and closed more than 1% higher. We have changed the market status to a Rally Attempt as Nifty managed to stay above its recent low (16,782) for three consecutive sessions. On the sectoral front, barring Nifty Pharma (-1.6%), all indices closed higher. Nifty Metal, Auto, Financial Service, Banks, and Realty closed 1.3–2.3% higher.
On the options data front, PCR for weekly contracts expiring December 2 stands at 1.29. From the OI data for weekly contracts expiring on December 2, maximum Call OI built up was seen for 17,500 strike price, followed by 17,600 strike price, which amounts to 176.93 lakh contracts and 101.45 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 16,500 strike price, followed by 17,000 strike price, which amounts to 126.43 lakh contracts and 119.91 lakh contracts, respectively.
After considering the above points, Nifty is currently hovering around its 100 DMA with a negative bias, which is placed at 17,139. We expect sustainable trading below this level may turn more volatile and open a new downside window. However, some bounce back cannot be denied if it manages to hold above its 100-DMA. From weekly expiry perspective, index may remain positive if index manages to close above 17,150–17,180 range and in such case index may move to 17,300–17,350.
BankNifty Futures: LTP – 37,441
Bank Nifty has been in a downtrend since last week of October and forming lower low lower high price formation on the daily chart. On November 30, it opened gap down and touched low of 35,300. It has formed an inverted hammer candlestick pattern with a long upper shadow followed by a bullish candle on the daily chart. The momentum indicator RSI has touched the oversold zone and MACD is trending below zero line.
On the options data front, PCR for contracts expiring December 2 stands at 0.85. From the OI data perspective for weekly contracts expiring on December 2, maximum Call OI built up was seen for 37,000 strike price, followed by 38,000 strike price, which amounts to 86.03 lakh contracts and 75.65 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 36,000 strike price, followed by 35,000 strike price, which amounts to 77.28 lakh contracts and 58.48 lakh contracts, respectively.
After considering the above technical parameters and options data, this major sectoral index is trading with a negative bias. Currently, pullback trade cannot be denied. From weekly expiry prospective, sustainable trending above 36,200 may turn positive.
Bullish setup in stocks such as Vodafone Idea , Tech Mahindra, Power Grid Corp.Of India, among others.
Bearish setup in stocks Alkem Laboratories, Dr. Reddy's Laboratories, Berger Paints India, ACC, PVR such as among others.
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