Summary Report: Open Interest, Option Chain and FII/DII Activity in Nifty 50 for the Week Ending June 19th, 2020

2 min read

By Ashutosh Dave

Price-Volume Analysis

The markets went into rally mode again towards the end of the week, shunning the fears of a resurgence of the coronavirus pandemic, as Nifty 50 breached 10200 levels on the last day of the week. The volumes increased in the first half of the week and then slipped towards the end.

Open Interest Analysis

The combined open interest in all the three futures decreased in the middle of the week due to the hangover of weakness from last week, but recovered swiftly with price towards the end of the week, indicating fresh long build-ups.

Option Chain Analysis

When looking at the option chain of the options expiring on the 25th of June, strong short term support levels have developed around 10000, 9500 and 9000 respectively as seen in the high open interest on the put side. While short term resistance points can be observed around 10500 and11000.

FII/DII Analysis

Although the FIIs started the week by being net sellers, the amount of selling kept decreasing and converted into buying in the last two days, supporting the upward move. The DIIs on the other hand were net consistent buyers, with some small amount of selling on the very last day. Overall, the institutional activities point towards a positive opening for the markets going into next week.

For the research methodology and more information on Nifty 50 futures refer to this earlier blog on QuantInsti portal.

Disclaimer: All investments and trading in the stock market involve risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments is a personal decision that should only be made after thorough research, including a personal risk and financial assessment and the engagement of professional assistance to the extent you believe necessary. The trading strategies or related information mentioned in this article is for informational purposes only.

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