Stronger hands preferred exiting longs: Angel Broking

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

"Post last two sessions strong upmove, we began the weekly expiry day on a cheerful note tad above 14700 mark amid positive global cues. As the day progressed, the benchmarked consolidated for initial few hours and then all of a sudden we witnessed a sharp sell-off to drag index towards 11500 mark. Eventually, due to some recovery in last few minutes index concluded the day tad below 14600 mark.

Recently, we did saw some longs in Nifty but during this period stronger hands preferred unwinding their longs. Their index futures 'Long short Ratio' plunged to 63% from 80%(seen during start of January series), which clearly suggested they don't expect major upside from hereon. Considering at today's sell-off, the put writers of 14300-14600 ran to cover their positions. Whereas, meaningful positions were formed by call writers in 14600 strike. Considering today's development, we believe 14650-14750 to now act as a hurdle immediate support is placed around 14500 mark."

Source : Equity Bulls

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