“We began the truncated week on an optimistic note, but these early morning gains were short lived as we saw sharp profit booking in the initial half an hour to drag index towards 14350. Post some consolidation in the midst, index resumed its down fall to plunge towards 14200. Eventually, index concluded the day with a cut of almost a percent to Friday’s close.
It is the third consecutive sessions wherein we witnessed decent profit booking in Nifty futures; in case of banking index, good amount of shorts were formed. During the series, we observed profit booking by stronger hands and in the week gone by they also added few bearish bets in index futures segment. As a result, their long short ratio plunged below 60%. In index options front, we saw fresh writing in 14300-14500 call strikes. On the other side, except for some build-up in 14200 put, we hardly saw any relevant open interest activities in the put strikes. At current juncture, around 14200 is an immediate support zone and any correction below this may drag index towards 13900-14000. On the upper side, 14300-14400 shall act as a hurdle now.