Technical
The benchmark index Nifty has witnessed a spectacular recovery during the week. The index value once again moved above previous swing high. Daily RSI is in positive crossover. The bias is likely to remain very side ward to bullish as long as the Nifty remains above 14800. On the higher end resistance is pegged at 15350; above which the index may move up towards 15500.
Derivative
Markets witnessed a stellar week of trading with both Nifty and Bank Nifty closing on the record highs. Across the board, buying frenzy was seen in both the indices post the announcement of the Union Budget. Bank Nifty outperformed the Nifty index by a whopping ~7% with both the indices closing the week ~17%/10% higher along with an addition of heavy long positions. Long gamma positions were the flavour of the week as the indices posted a sharp delta move. FIIs index futures long/short for the February series hovered around the ~2x level, as the FII’s added fresh short positions to hedged against their existing longs, however the concentration of the positions continued to remain in the favour of the bulls. On the options front (February 12, 2021 expiry), Nifty 14700PE witnessed fresh writing positions, indicating a formation of a floor level for the index around the mentioned strike for the next week.
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