Use the modified Call Butterfly strategy in Nifty For 2 June 2022

Given the negative momentum, the week ahead can be approached with a low-risk strategy like Modified Call Butterfly in Nifty. Nifty saw a momentum shift from bearish to bullish as it rallied back from 15,700 and ended the week on a positive note around 16,275 with a significant gain of around 3%. During the week, Nifty rotated between 16363 and 15740 ) front, long rise observed in Nifty over the week was attributed to the rise in the OI. On the other hand, Bank Nifty moved in line with Nifty as it also ended the week with significant gains of more than 3%, closing around 34305. Bank The Refined Future has been circling between 34620 and 33000 for the last week. Overall, Bank Nifty ended the week up more than 1100 and witnessed short covering on the OI front. Further diving into the upcoming weekly expiry of Nifty PE options writers shows aggression. Skilled immediate and important support is at 16000 levels where almost 79L shares added. On the higher side, the immediate resistance level is at 15300 where almost 48L shares were added, followed by 17000 where almost 78L shares were added. A look at the upcoming Bank Nifty weekly expiry dates. On the upside, Bank Nifty's immediate and key support lies at 34,000, where nearly 25L stocks were added, while on the downside, immediate resistance lies at 35,000, where 18L stocks were added, followed by one key resistance at 36,000 where nearly 15 liter of stocks were added. The Indian VIX, the fear gauge, fell more than 5% on the week from 24.53 to 23.09 while still trading above the 20. The cooling of the IV has reduced fear in the market. Additionally, any downtrend in VIX can drive the upside move in Nifty. . Looking at the sentimental indicator, the Nifty OI PCR is up from 0.726 to 1.078 for the week. The Bank Nifty OIPCR rose to 1.06 over the week from 0.743 last Friday. The overall data shows that PE authors are more aggressive than CE authors at Nifty. Moving on to the weekly sector contributions to Nifty, most sectors, with the exception of IT and cement, are positive contributors. OIL, PVTB, and NBFC were the top contributors to the Nifty's upside at 171, 131, and 49 points, respectively, while IT and power were negative contributors to the Nifty, at 88 and 4 points, respectively, during the week F&O segment, HAL led the way with an increase of over 16%, followed by BHEL 15% and Granules 13%, while Dr. LalPath Lab down over 12% over the week, Metropolis down 10% and Lupine down 8% The coming week can be approached with a low-risk strategy like Modified Call Butterfly in Nifty.