The standout piece of evidence in yesterday trading is the shift of the short Put position upward- from 25000 to 25200 in NF and 56000 to 56500 in BNF. This is clear evidence that the view continues to remain bullish and the sentiment is improving further towards the bullish side. The fact that the market has made it thru some 300-point jugglery across successive days and still made it higher will have much to do with it. In this week so far, both indices have managed to maintain an upward slant, giving credence to the buy-dip sentiment. PCR is near neutral and the IV has been dropping. The premiums on options are in balance, with call premiums indicating a continued bias towards bullish. That is visible in the data in the form of additions in future OI in the indices. But the missing data here is still the absence of any short covering in FII index short positions. And they have been sellers in equity for the last 3 sessions as well.

Gearing up for the month’s expiry today, the straddle range that I had spoken about is now crossed to the upper side (and we find put additions) and hence there is a chance of short covering emerging today also. Retail trade has been largely shorting calls since early June with their positions rising to the highest in the month. Will they get pressured into covering? That will drive trends higher still. For the first time in June, the Pro accounts have moved to net Index futures long and that too is a signal that markets could move higher. Chances are that expiry today should be higher.

Both indices are comfortably above their D/W/M Cpr levels and that alignment too suggests that the price action is comfortably intact. Stop can be moved to just under the erstwhile Put concentration area (which are also the BC area of weekly CP) at 25/56k. For day trades Put shorts there can also be tried.
For those that like to play options, Raja Sir from our office holds free webinars on how to use Neotrader to generate your own option trades (in addition to the ready option trades that is already present in the program). Do check out his videos to add to your understanding of Neotrader and markets.

BSoft looks interesting. Result were poor and stock got knocked down but has been making higher bottoms on the charts. Now a breakout of sorts seen on high volumes. In addition, stock is in ban in futures and on the day of expiry, so no rollover is possible. One day game or something else afoot? I bought a small position on delivery to check out what is happening.
M&M, Hdfc Life, Grasim are hitting life time highs in uncertain markets. So, there is some conviction there. Both are in fno list so dips should be bought and they should be on your list for long plays for the present. Among recent listings, Hyundai shows a positive wave structure from the lows and should be added to the tracking list for buying dips.