The Nifty ended 83 points higher at 7,982 on Friday, extending its winning streak to a second straight week. Derivative data suggests that the Nifty's winning run is likely to continue this week too.
September Nifty futures added 11.9 lakh shares to open interest, while the premium on Nifty future increased to 0.65 points from a negative 2.85 points on Friday, suggesting fresh addition of bullish bets.
Option data also suggests the continuation of bullish trend, though the Nifty is likely to be range bound between 7,800 and 8,200.
Maximum open interest of 48.9 lakh shares was concentrated at 7,800 strike put, which suggests 7,800 will act as a near term support in case of any correction in the Nifty. Similarly 8,200 strike calls had the maximum open interest of 36.5 lakh shares, suggesting upside in Nifty will be capped at 8,200.
Overall, Nifty calls shed 47.6 lakh shares in open interest, while open interest in puts shed 7 lakh shares, pushing the put call ratio to 1 from 0.95 earlier. PCR is the ratio of open interest of puts and calls. A PCR value of more than 1 indicates bullish outlook for the market.
The India VIX or the volatility index fell 16.84 per cent to end at 18.29 on Friday as traders anticipate lower volatility in the near future.
Among individual stocks, bullish bets increased in Amara Raja Batteries, Adani Ports and Indiabulls Real Estate. However stocks like SKS Microfinance, Bajaj Finance and Voltas saw addition of short positions
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