F&O Tracker: The tide is turning
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Nifty 50 appreciated 2.8 per cent last week, marking its biggest weekly gain since April.
- ✓Both Nifty 50 and Nifty Bank indices rose for two consecutive weeks, turning the near-term outlook positive.
- ✓Data showed short covering as traders sold more put options, which helped the market sentiment turn clearly bullish now.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Business Line
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
Reversal patterns emerge in Nifty 50 whereas Nifty Bank is testing a crucial barrier
Nifty 50 (23,146) appreciated 2.8 per cent last week, the biggest weekly gain since April. Nifty Bank (55,844) advanced 1.1 per cent. Both indices have risen for two consecutive weeks now and have turned the near-term outlook positive. Below is an analysis.
Nifty 50
Nifty (Oct) futures (23,119) rose 2.2 per cent last week. But the outstanding Open Interest (OI) dropped 11 per cent to 170 lakh contracts. A price rally along with a decline in OI denotes short covering.
The options positioning also supports the positive bias. The PCR (Put Call Ratio) of October monthly options increased, albeit marginally, from 1 to 1.10 over the last week. The ratio went up as traders sold relatively more put options compared to calls. Participants sell puts when they are bullish.
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Business Line
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