The Nifty rallied 43 points to close at 8,295.45 on Friday, tracking gains in the global market, but it could not manage to close above the psychological mark of 8,300. However, derivative data suggests that Nifty may close above the 8,300 mark on Monday.
The 8,300 strike Nifty call, which had the maximum open interest till Friday, shed 4.9 lakh shares in open interest to 55.1 lakh shares and the 8,300 strike put saw addition of 8.2 lakh shares to open interest. This suggests weakening of 8,300 level as a resistance for Nifty. Traders believe that 8,300 mark may be taken out by Nifty soon.
However, 8,400 is likely to act as a resistance now as open interest has got shifted from 8,300 strike call option to 8,400 strike option; the 8,400 strike option saw addition of 6.5 lakh shares to open interest.
Overall, puts added 13.1 lakh shares to open interest, while calls added 5.4 lakh shares to open interest pushing the put-call-ratio (PCR) to 1.06 from 1.05 earlier. A PCR of more than 1 suggests bullish outlook for the market.
Meanwhile, the Nifty October futures have added 9.3 lakh shares to open interest and the premium on Nifty futures fell to 8.7 from 10.6 points earlier. Reduction of Nifty futures premium by nearly 2 points might not be an indicator of addition of short positions; rather, it might have been due to the reduction in time till expiry. The October derivative series will expire on Thursday.
The India VIX or the volatility index fell 2.59 per cent to 16.19, indicating confidence among traders to build long positions.
Among individual stocks, Idea Cellular and Dabur saw addition of bearish bets while Asian Paints and Jindal Steel saw addition of bullish bets.