Technical
The Nifty ended the session with a weekly gain on the board registering 5th winning streak in a row. On the daily chart, the index has moved above previous swing high, which is a bullish set up. So the trend remained strong as the Nifty maintained above 10550 levels. The weekly RSI is in bullish crossover and rising. Going forward, Nifty may continue to move higher. Next crucial resistance is placed at 11000. A decisive move beyond 11000 may induce much stronger rally. On the flip side, crucial support is pegged at 10550.
Derivative
Markets continued to trend higher with the benchmark index Nifty closing above its important 200DMA resistance level. Bank Nifty outperformed the Nifty index by ~0.5% with both the indices closing the week ~1.8% and ~1.3% higher, respectively. Both the index future added fresh long positions during the week with IT stocks outperforming. FIIs index future long/short ratio hovered to 1x level as FIIs marginally reduced their short positions and gradually added fresh long positions in the index futures. India Vix index closed the week at 24, down ~4%. On the options front (July 23, 2020 expiry), Nifty and Bank Nifty out of the money put options added writing positions as the underlying price surged higher.
