F&O Tracker: For bulls, it may not be a sparkling Diwali

By Hemant Nahata, IIFL

As expected and reflected by derivatives data, Nifty took support near 7800 levels, even after unfavorable outcome for NDA in the Bihar polls. From the very start of the trade, 7800 put options writers were adding and holding on to their positions.

On options front, the maximum pain on Nifty November series stands at 8,000 levels; indicating a high probability of Nifty slowly but gradually moving towards the maximum pain zone level.

On FII front, activity continues to remain subdued in the futures segment. FIIs current long-short ratio on index futures is trading within the band of 2.2-1.8x for the current series. With earning and election outcome out of the picture, market will prepare for the impending US Fed rate hike. It may not be a sparkling Diwali for bulls, but market pullback on Monday would definitely raise hopes of a better Samvat 2072.