After some huffing and puffing, the indices made it higher finally by the end of the day. So now, going by earlier patterns, should we see a down day today? Hopefully not.
Option traders have been quick to pounce on the changes, slamming more Put shorts, raising their interest to 25150 and 25200 strikes- almost to current levels. Concomitantly, call short liquidation happened in those strikes with hardly any fresh addition higher. This speaks of a shifted mindset and expectations of a continuation higher today. This has led to PCR moving up to 1.03, so from oversold yesterday we moved to neutral today. In the BNF too there is a good Put writing at 57000 levels.

Well, the resistance at 25350 continues to loom and that has to be crossed for continuing higher. Yesterday I had stated that option buyers would only be saved by directional move in indices . Yesterday we got some and hence long options would have worked. Above the resistance, buyers of options may continue to benefit.

It would be good to check the OI at the ATM strikes 30 minutes from the start to know where the addition or shedding is happening. That should clue you in about what is happening within the market.

It is a real paradox that after the ceasefire, Pak market has hit new highs but the Nifty is still struggling! On the tariff front, Indonesia rallied a bit, tariffs came at 19%, market rallied further. Japan was churning, tariffs came at 15%, then markets have rallied sharply. China markets have been rallying a bit. So, why are we seeing shorts in our markets? Why is there skepticism about gains here? Things are not adding up, really. When are we going to catch up with the world? Are we overdoing this tariff thing?

Infy seems to have come up with satisfactory numbers. Will the market receive it so? We all thought HCL Tech was not bad, but stock has got smacked down. On the Neotrader WellSet Bear set up, this stock has delivered 10% or more. Infy is in the Wellset Bear, signal coming in two days ago! Reaction in the ADR is positive. Stock is in a range of 1540-1640. Can use that range as a guide for gauging what the market thinks. The other two names (Persistent, Coforge) seem to have done OK too. So, here is hoping that the three can pull the IT index out of its morass.