Below is the Views On Derivatives Wrap Up for the week by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking)
“May series started with a gap down opening in Nifty and the index corrected gradually throughout the series to almost test the 8800 mark. Nifty consolidated in last couple of weeks and pulled back sharply in last two sessions to end the series around 9500, with a loss of 3.75 percent compared to last expiry.
In last couple of sessions, the underperforming Banking space witnessed short covering which resulted in a sharp upmove in the BankNifty index. Stocks from the F&O space witnessed good momentum due to a combination of short covering and fresh long formations. The rollover in Nifty is at 75.67% while in Bank Nifty it is at 81.13%. FII’s have squared off much of their index futures short positions and their ‘Long Short Ratio’ at the start of new series is at 63%. Looking at the data, we are of the opinion that the index is likely to witness buying interest on declines and hence traders should use a buy on dip strategy and trade with a positive bias.”
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