Big time call writing occurred yesterday and kind of eclipsed the large Put short position at 25000, mentioned earlier, putting that into a bit of a shade. This led to a drop in the PCR to 0.70 for today. In BankNifty too, the large OI at 57000 Ce short stayed and got added to some more. This adds to the difficulty in going up today. Since both indices continue to remain in the same ranges as before- Today morning GiftNF is up, probably on tariff deal signing with Japan. How that should help us I have no idea. But levels remain similar. Till 25350 is crossed, bulls are not in the game. .

As I had mentioned, the options values lost out quickly early in the day, leading to dullness across the rest of the day and even Jane Street return couldn’t do much! Option prices fell further as IVs dropped some. Option sellers did make some money thru this. But that needs margins and therein lies the crux for most small retail players. They want to trade options but are forced towards long options. In markets like these it is only directional move that brings them profits. But when markets dont favor consistent trends and when IVs drop, option buyers are left nursing losses. This is the 93% data put out by Sebi.

So, it was all left to stock plays to deliver some profits. Eternal sprang a surprise by hit UC soon after the start. it finished well too. Evidently, its future plans overrode concerns about current losses. Paytm results were good too and it should improve. If it does, then it is getting into light overhead resistance area and can move faster. If growth story can power Eternal the way it has, breaking out into profits should help Paytm even more? See chart attached.

Today is an IT heavy day with several big results from the sector. This day should decide the trends for the sector for the coming few months. Bad numbers and you can probably see trends remain depressed for a couple of months even. But the names of today still may pack a punch in rescuing the sector from that fate if they come out with some thumping good numbers. Lets see. There is expectation of growth in Infy. If that gets fulfilled, it would help.