13900-14000 to act as demand zone: Angel Broking

Derivatives Wrap-up by Mrs. Sneha Seth (Derivatives Analyst, Angel Broking):

"We began today's session with an upside gap tad above 14100; but, decent profit booking took place in the initial two hours to drag index towards 13950. Fortunately, due to fresh buying interest around this psychological mark of 14000, the benchmark index recouped all the intraday losses to conclude the session above 14100. The banking index too opened on a positive note but once again 31500 acted as a very strong hurdle. Post sharp fall of nearly 600 points, BANKNIFTY consolidated in a range to eventually end the day with marginal loss. As far as other sectors are concerned, spectacular run was witnessed in metals and IT space. The Nifty Metal and Nifty IT index were up 5% and 3% respectively.

In F&O space, we saw addition of fresh long positions in Nifty and mixed positions were formed in case of banking index. Long positions formed in last series have been rolled over to January series and are still intact. Stronger hand too preferred rolling over longs and now their index futures 'Long Short Ratio' stands at 75%. Today, despite sharp profit booking in the early morning trade put writers of 14000 and 14100 strikes preferred holding their positions strongly and this resulting V-shaped recovery. On the flip side, decent open interest addition was visible in 14100, 14200 and 14400 call options and we believe these are longs. Maximum open interest concentration remains intact in 14000 put and 14200 call options. Considering the above data points, we expect further upside towards 14200-14250 in the coming session. On the downside, 13900-14000 is a very strong demand zone."

Source : Equity Bulls

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