Nifty consolidated in a small range as the banking kept sulking. Fortunately, the IT space saw some renewed buying interest which

kept our benchmark in the positive terrain to eventually register yet another record high beyond the 15800 mark. Among the key

indices, Nifty gained 0.82% during the week which was mainly led by handsome gains of 4.52% in Nifty IT. The Nifty Midcap 50 index

too added another 2.57% to its kitty; however the banking remained laggard by losing over half a percent.

Since we are trading in an uncharted territory, a small uptick from hereon would give us new high. Hence, it should be considered

only as a number now. Since last couple of weeks, we have been mentioning how there is no major hurdle seen before 16000 and in

line with this, the Nifty has been continuing its rally. But the kind of price action we witnessed during the week (especially in banking

space), it’s not giving us the comfort now. Hence, if benchmark has to reach this milestone of 16000 and even move beyond it, the

BANKNIFTY needs to surpass the sturdy wall of 36000. If it fails to do so then we may see some bouts of profit booking in the

Extension’ of the first up leg started after March 2020 lows. By highlighting this, we do not expect the multi-year Bull Run to end; but

at least a short term pause or profit booking cannot be ruled out. Hence traders are now advised to take some money off the table

and avoid aggressive bets overnight. Also, the stock specific approach still can be continued but one has to be very fussy and should

Nifty spot closed at 15799.35 this week, against a close of 15435.65 last week. The Put-Call Ratio has increased from 1.30 to 1.35.

In options segment, we hardly saw any relevant build-up in call options; however, 15700 and 15800 strikes of puts added good

amount of positions. Maximum build-up in the weekly series is placed in 16000 call and 15700 put options.

During the week, we had a cheerful start tad above 15700 and then some consolidation with positive biasness was observed. On

Wednesday, the benchmark index clocked fresh record high but failed to sustain at higher levels and sharp selling pressure dragged

index almost towards 15550. However, in next two sessions index reclaimed 15800 mark. In F&O space, we saw decent longs

formation in Nifty; whereas, in banking space underperformed and shorts were also formed. In options front, we saw good amount

of writing in puts shifting the base higher to 15700 now. FIIs added mixed positions in equities and index futures; whereas,

meaningful bullish bets was witnessed in stock futures. Surprising the banking is not participating recently and short addition in this

space is a sign of worrisome. Hence, we would advise traders to be watchful before initiating any aggressive direction bets in index