Bank Nifty likely to underperform

MUMBAI: Nifty rollover around 74% is higher than the average and we have seen rise in open interest too. Bank Nifty too had high rollovers around 73% which is higher than its averages and interesting we have witnessed significant formation of short positions. Data in Bank Nifty is much easy to assess then Nifty in beginning of November series.

This index has added meaningful short positions around 17600-17800 levels which was resistance and was mildly breached. In options front 8300-8500 strike calls are seeing action, indicating 8380-8400 resistance is very much in place. Also on put side we are witnessing 8000 and 8100 strike has meaningful built-up, however in Thursday's session 7800 strike put was also quite active. We don't expect huge change in it unless 8000 or 8400 is breached.