Derivatives Data Suggest Nifty Range Between 9,000-9,200 As Bullish Bets Pile On

Foreign investors hold over three long positions for every one short position in Nifty futures. While the number of long positions held in index put option contracts by them is more than those held in call option contracts, the difference between the two is less substantial.

Additionally, the number of index call options written by foreign investors and proprietary desks is 47 percent more than index put options. Usually, these factors indicate optimism on part of foreign investors.

While the Nifty 50 index closed flat on Friday, it was at a record high on closing basis. Investors' positive outlook was reflected through buying in index futures as well as considerable writing in the 9,000, 9,100 and 9,200 strike puts, which reflected an upward shifting of support base.

Maximum open interest currently is with 9,000 put and 9,200 call which indicates a near-term range for the Nifty.

Reliance Industries, one the week's largest gainers, added over 3 percent in its futures open interest across all series in fresh long positions and was one of the key drivers of benchmark indices towards fresh record highs.