OI data from 14th Jan

Above is the Open Interest figures of Nifty for the trade dated 14th Jan.

Put writers added about 9% in OI at the 5200 strike and call writers reduced their exposure by 11.5%, in the process confirming the recent low around 5200 as a very big support for the market going forward.

But the call OI of 5.6 mn at 5300, would still be a formidable resistance for the bulls to overcome.So even though the bias is positive, the upmove will be a laboured one.

What is important to note is the drop in IV's from 4th Jan of about 4 basis points from 23 to around 19 levels today.

There is no fear in the market as bears have failed to show up in numbers.