The market range is 13767-14033, with the scale evenly balanced as of now, options data show.
Sellers have written or sold more puts on Nifty than calls, though that gap has been narrowing. Traders sell more puts when they are confident the market wouldn’t fall below the level sold minus premium received from the put buyers.
Call sellers, on the other hand, expect the market wouldn’t rise above the level sold plus premium received from the call buyers.
So, when there are more puts sold than calls sold cumulatively , the set up is bullish. But when the gap between the two narrows, it implies supply at upper band , or profit booking.
The market has been supported by heavy FII/ FPI buying in cash as well as on index futures (Nifty and Bank Nifty).
For eg, in the fiscal year to date , net FII investment in cash is at Rs 2.14 lakh crore. In index futures cumulative net longs stood at 60158 contracts.
