Summary Report: Open Interest, Option Chain and FII/DII Activity in Nifty 50 for the Week Ending May 29th, 2020

2 min read

By Ashutosh Dave

Price-Volume Analysis

The markets shunned bearishness on the back of optimism about reopening of the country after four consecutive lockdowns. The rally was also supported by both the FIIs and DIIs being net consistent buyers in this week.

The volumes remained at decent levels as the Nifty 50 zoomed above 9400 levels on the expiry day (28th of May). Less action took place on the last day of the week as the market took a pause to go into June.

Open Interest & Rollover Analysis

The combined open interest in all the three futures increased steadily through out the week (except for the last day) with the price, indicating a building up of positions on the long side as we head into the next month.

A decent rollover into the next series of about 75% was observed.

Option Chain Analysis

Overall bullishness can also be observed in the option chain of the weekly options expiring on the 4th of June as strong short term support levels have developed around 9000, 9200 and 9400 respectively as seen in the high open interest on the put side. Significantly week resistance points can be observed arounf 9500 and 9700.

FII/DII Analysis

Both the FIIs and DIIs showed net consistent buying in this week, supporting the rally. This is a bullish signal as we head into the new month.

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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