during the week started with a decent upside gap and importantly, it managed to hold on to it. The similar sort of strength was

visible on Friday as well at the opening as Nifty was very much on the move towards its record highs. However, all of a sudden

traders chose to take some money off the table and hence post the mid-session, we witnessed a sharp decline to not only pare

down all gains but also to sneak well inside the negative terrain.

Barring second half of Friday, market almost had a unidirectional move throughout the truncated week. However, post the gap up,

we did not see any major action in indices as they kept oscillating within a small range by maintaining their positive posture. The real

action was seen in individual themes which also were missing on Friday. Now with Friday’s move, 15200 – 15400 has become a

sturdy wall for Nifty and it would really be a daunting task surpassing this in the absence of any major trigger on the global as well as

domestic front. On the flipside, the key support is placed at 14925 – 14850. A sustainable violation of these supports would lead to

Index (VIX)’ which had cooled off this week and sneaked below the 19 mark, again surged to reclaim the 21 level. Further spike in

this fear index could lead to higher volatility in our market. Hence, traders are advised to stay light and should keep a close tab on all

the above mentioned levels.

Nifty spot closed at 15030.95 this week, against a close of 14938.10 last week. The Put-Call Ratio has decreased from 1.12 to 1.02.

The annualized Cost of Carry is positive at 3.82%. The Open Interest of Nifty Futures has decreased by 6.70%.

During the week, we saw a gradual upmove in markets ahead of the mid-week holiday. Nifty opened with a gap up above 15300 on

Friday, but suddenly it corrected sharply in the later half to conclude the week just above the 15000 mark.

We witnessed some short covering moves in the Nifty during the week as the index rallied; while no major build-up was seen in Bank

Nifty till Wednesday. However, when the markets corrected in the later half on Friday, traders preferred to form short positions in

the banking index where a rise in open interest was seen. FII’s preferred to lighten up some of their positions in index futures during

the week. In the options segment, 15300 call option of the weekly series has seen a good open interest build up, indicating

aggressive call writing at this strike, while 15000 put option has decent OI outstanding. In case the Nifty breaches Friday’s low of

14950, then we could see unwinding of positions by the put writers of weekly as well as monthly series. Looking at the above data,

we advise traders to stay light on positions and any pullback towards 15200-15300 if seen, should be used as a shorting opportunity.