Call writers surrendered their arms: Angel Broking

Derivative Write-up by Ms. Sneha Seth (Derivatives Analyst, Angel Broking):

"It was yet another attempt of recovery from the important support zone of 11550-11600. The benchmark index opened on flat note with negative bias today and consolidated below 11600 mark. In the latter half, index not only recovered completely but also extended the up move beyond 11650 mark on the closing basis. The PSU banking index outperformed the benchmark and was up by 1.64%.

Last week, we witnessed decent open interest reduction in both Nifty as well as BankNifty. However, good amount of longs are still intact in the system. Stronger hands rolled over their bullish bets in current series and are still holding same. In fact, they have been adding fresh long positions in stock futures in April series. At present, 11550-11600 is an important support area for Nifty. In the early morning, we witnessed decent writing in 11650-11850 call options but as the day progressed these positions were lightened up. On the flip side, fresh writing was seen in 11500-11650 put options. Considering today's development, we expect further upside towards 11750-11800 going ahead."

Source : Equity Bulls

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