Index to remain in a range of 9800-10000: Angel Broking

Views of Ms. Sneha Seth (Derivative Analyst, Angel Broking):

"Trading for a week started on a flat note despite positive Asian cues. During the day, the benchmark index remained range-bound and concludes the session below 10000 mark.

As far as Nifty options activity is concerned, some build-up was seen in 10000-10100 call options. On the flip side, 9800-10000 puts continued adding fresh position, resulting PCR-OI surging higher. At present, highest open interest for October series stands firm at 10000 call and 9800 put options.

Since the beginning of October series, we have been witnessing decent amount of long formation in index futures. In addition, stronger hands (FIIs) too participated in recent upmove by adding some fresh longs; while, huge shorts rolled over in index futures are also intact. However, they continue curbing liquidity through cash market segment. Although, Nifty is hovering around resistance zone of 10000-10050, we can hardly witness unwinding in 10000 call option. Thus, we believe market may continue to trade in a range going ahead. Hence, traders are advised to prefer stock specific approach unless we see any meaningful change in data."

Source : Equity Bulls

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