Technical View
The Nifty ended the week higher it moved up above 12,000 comfortably. On the weekly chart, the index moved above the previous consolidation which suggests the rise of bullish bet for the short to medium term. Weekly RSI is in bullish crossover and rising. On the higher end resistance is placed at 12,600-12,700; a decisive breakout above 12,700 may induce further rally in the market. On the other hand, crucial support is placed at 11,750; below which the Nifty may witness selling pressure.
Derivative
Markets traded with a positive bias throughout the week as both Nifty & Bank Nifty gave a fresh breakout above its crucial resistance of 12,000 & 25,000 level. Bank Nifty outperformed the Nifty index by 6% with Both the indices closing the week ~5.5%.12% higher. As the open positions continued to surge higher along with a sharp rise in the underlying price, the index future of both the indices added fresh long positions during the week. Long gamma positions were the flavour of the week as the indices posted wild swings. FIIs index futures long/short ratio with started the November starts at 0.8x witnessed a sharp spice upto 2x level as the FII’s aggressively added fresh long positions. On the options front (November 12, 2020 expiry), across the board buying positions were formed in Nifty call options as the index trended higher.
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