INSUBCONTINENT EXCLUSIVE:
The put call ratio (PCR) on Nifty active month options declined to 1.02 Tuesday from 1.12 a day earlier as put buyers booked profits
Simultaneously, traders stepped up sales of Nifty calls, indicating that the market bias remains negative within a tight range for the
current month despite the index having received strong support at technical level of 11,930.
The level of 11,930 was the 50 per cent
retracement from the low of 11,614.5 on February 2 to the high of 12,246.7 on February 14
Tuesday, up from 96,320 contracts a day earlier
They also stepped up cumulative purchases of index puts to 2.16 lakh contracts from 1.96 lakh contracts
In the past two out of three sessions, FIIs net sold shares in cash, which adds to the bearishness.
A break below 12,000 could see the index
analysts feel the turnaround from the 50 per cent retracement level indicates that the Nifty could post an immediate bounce before a
expiring on February 27 indicate maximum resistance for the index at 12,200 and strong support at 12,000, followed by 11,800
The current pricing of the straddle indicates a range of 11,816- 12,184
This means if the market breaks below 12,000 it could slip to 11,816, while resistance kicks in around 12,200.
