Summary Report: Open Interest, Option Chain and FII/DII Activity in Nifty 50 for the Week Ending June 5th, 2020

2 min read

By Ashutosh Dave

Price-Volume Analysis

The rally from last week continued with strength this week as well and the Nifty 50 breached 10100 mark on the back of optimism about reopening of the country and on global cues.

The rally was also supported by strong and consistent buying by FIIs. The volumes took a slight dip towards the end of the week after substantial action in the beginning of the week.

Open Interest & Rollover Analysis

The combined open interest in all the three futures increasedalong with the price, indicating a building up of positions on the long side.

Option Chain Analysis

Overall bullishness can also be observed in the option chain of the weekly options expiring on the 11th of June as strong short term support levels have developed around 10000, 9800 and 9500 respectively as seen in the high open interest on the put side. While short term resistance points can be observed around 10300 and10500.

FII/DII Analysis

FIIs showed strong net consistent buying in this week, supporting the rally. This is a bullish signal as we head into the next week. The DIIs on the other hand were net sellers with smaller magnitudes.

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

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