2 days Ago By Dasari Sreenivasa Rao
The resistance level remained at 25,400CE for two weeks in a row, while the support level declined by 1,500 points to 22,000PE as per the latest options data on NSE. The highest Call OI is seen at 25,400CE followed by 23,200/ 24,000/ 25,000/ 24,500/ 24,200/ 23,700/ 22,900 strikes, while 25,400/ 25,000/ 23,000/ 22,900/ 23,100/ 23,300/ 23,400/ 23,500/ 23,700/ 24,000/ 24,200 strikes recorded hefty build-up of Call OI. Only deep Call OTM strike 25,200CE witnessed marginal fall in OI.
Coming to the Put side, maximum Put OI is visible at 22,000PE followed by 22,500/ 20,650/ 21,000/ 21,900/ 21,800/ 22,200/ 22,700/ 22,900/ 23,000/ 23,300 strikes. Further, 20,650/ 20,700/ 21,00/ 21,400/ 21,700/ 22,000/ 22,500/ 22,700 strikes. Put ITM strikes from 23,000PE inwards recorded fall in OI.
According to ICICIdirect.com, fresh Call writing was observed at ATM and OTM strikes with highest Call base placed at 23,800 strike making it crucial hurdle in the coming week. In terms of Put bases, the highest Put base is visible at ATM 22,000 strike, below which weakness is likely to extend in a shortened week.
Any extended gains are likely only if Nifty is able to surpass 22,000 level. For the week ended April 4, 2025, BSE Sensex closed at 75,364.63 points, a hefty fall of 2,050.
29 points or 2.64 per cent, from the previous week’s (March 28) closing of 77,414.92 points.
NSE Nifty too declined by 614.80 points or 2.61 per cent to 22,904.
45 points from 23,519.35 points a week ago. Open Interest in Nifty futures fell to 1.
24 crore shares during the begging of April F&O series when compared with March series. Along with that significant closure was observed in FIIs net short positions helping the recovery in the headline index. The current low Open Interest suggests cautious approach by market participants amid looming global uncertainty surrounding reciprocal tariffs by the US.
Volatility index India VIX rose 1.14 per cent to 13.76 level.
India VIX remained under pressure and closed the week below 13 level suggesting expectations of no major directional move. Also, after a sharp up move seen in March, consolidation is expected in April with stock specific moves amid result season. After remained net buyers for the second consecutive week as quarter ending flows helped in market recovery, FIIs on Friday turned net sellers once again.
After selling nearly Rs18,000 crore in the first half of the month, FIIs bought nearly Rs20,000 crore in the second half of the month which make the net flow for the month net positive. FIIs covered their shorts in the F&O space throughout the week as net short positions declining significantly. On the other hand, domestic funds used the recent up move to offload some equities, but bought some on the last trading sessions to turn the week flat.
Net shorts by FIIs at beginning of April F&O series were just 31,000 contracts and it’s the lowest seen since October. Marginal short additions were visible on Friday, but only a major increase in net shorts may suggest fresh round of weakness in the market, observes ICICIdirect.com.
Bank Nifty Bank Nifty NSE’s banking index closed the week at 51,502.70 points, a marginal fall of 62.15 or 0.
12 per cent from the previous week’s closing of 51,564.85 points. Uptick in Bank Nifty triggered short covering as well and OI declined significantly.
Short rollover in Banking index wasn’t observed and current OI in Bank Nifty is lowest in last two months. OI fresh addition will be the key for fresh directional move in banking index. Despite the sharp move seen during the last week, both Call and Put option concentration is visible near the ATM strikes.
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