On May 2, the benchmark indices closed the rangebound session on a positive note.
Crucial levels of support and resistance for the Bank Nifty and Nifty
According to the pivot point calculation, resistance is anticipated for the Nifty 50 at 22,697, 22,730, and 22,785 points. The index may find instant support on the downside at the 22,588 level, then move on to 22,554 and 22,499 points. In the meantime, the Bank Nifty underperformed the benchmark averages and closed in red. In a sideways trading session, the banking index dropped 166 points to 49,231 and formed a small bearish candlestick pattern with a long upper shadow on the daily charts for another session. This pattern resembles a Doji candlestick pattern, though it is not the ideal one, on the daily charts, indicating that bulls and bears are undecided about the direction of the market.
Data on call options
The weekly options data showed that, with 1.49 crore contracts, the largest Call open interest was observed at 22,700 strike. In the near run, this level may serve as the Nifty’s primary resistance. The 23,000 strike, with 1.15 crore contracts, came next, and the 22,800 strike, with 1.09 crore contracts, came after it.At the 22,700 strike, meaningful call writing resulted in the addition of 1.03 crore contracts. 23,100 and 22,800 strikes that added 42.95 lakh and 31.27 lakh contracts came after it.The 23,500 strike showed the highest Call unwinding, with 7.35 lakh contracts dropped; the 22,500 and 22,600 strikes showed the second-highest Call unwinding, with 4.76 lakh and 4.25 lakh contracts shed, respectively.
Enter option information.
With 1.91 crore contracts, the 22,600 strike has the highest open interest on the put side, and it can serve as a crucial level of support for the Nifty. The 22,700 strike, which included 86.21 lakh contracts, and the 22,000 strike, which included 81.8 lakh contracts, came next.In the 22,600 strike, meaningful put writing resulted in the creation of 1.4 crore contracts; this was followed by the 22,700 and 22,300 strikes, which added 57.22 lakh and 33.78 lakh contracts, respectively.At the 21,700 strike, put unwinding was noted, resulting in the loss of 11.35 lakh contracts. 21,500 and 21,800 strikes that resulted in the deduction of 8.49 lakh and 10.03 lakh contracts, respectively, came next.
stocks with a high proportion of deliveries
An elevated delivery percentage indicates a stock’s attraction to investors. Among the F&O equities, the highest delivery was observed in Atul, Kotak Mahindra Bank, Syngene International, Alkem Laboratories, and JK Cement.
71 stocks have a protracted increase
71 equities, including REC, IndiaMART InterMESH, Bosch, Navin Fluorine International, and Dr. Reddy’s Laboratories, showed a protracted build-up. A build-up of long holdings is indicated by an increase in both price and open interest (OI).
12 stocks have a protracted unwind.
Twelve equities, including Exide Industries, GAIL India, Axis Bank, ICICI Bank, and Dr. Lal PathLabs, experienced long unwinding based on the OI %. Price and OI declines suggest long unwinding.
44 equities see a brief surge.
44 stocks, including Pidilite Industries, Indraprastha Gas, Coforge, Hindalco Industries, and Kotak Mahindra Bank, had a brief increase. When price declines and OI rises, it indicates that there is a build-up of short bets.
58 stocks are being shorted.
The short-covering list comprised 58 equities, which included Can Fin Homes, Tata Chemicals, Shriram Finance, Federal Bank, and Biocon, based on the OI %. Short-covering is indicated by a decline in OI and an increase in price.
Ratio of Put-Call
The Nifty Put-Call ratio (PCR), a gauge of market sentiment, increased from 1.11 levels in the previous session to 1.28 on May 2.More Put options are being sold than Call options by traders when the PCR rises to 0.7 or above 1, which often signals a strengthening positive mood in the market. Indicating a bearish sentiment in the market, the ratio suggests that selling in calls is greater than selling in puts when it drops below 0.7 or approaches 0.5.
Data from FII and DII
On May 2, preliminary data from the NSE revealed that domestic institutional investors (DIIs) contributed Rs 1,352.44 crore, while foreign institutional investors (FIIs) net sold Rs 964.47 crore of shares.
NSE stocks prohibited from F&O
Aditya Birla Fashion & Retail has been added by the NSE to the F&O ban list for May 3, however Biocon and Vodafone Idea are still on the list.Securities that are prohibited under the F&O segment comprise businesses whose derivative contracts exceed 95 percent of the maximum position limit on the market.