Nifty ends the week with nearly 1% gains

On July 13th, 19400 call at 61 - 64, put at 73 - 75, stoploss: 200; target: 38, time frame: till weekly expiry. The nifty extended the gains to 19500 levels amid continued FII flows in the equities. Despite weak global conditions, Nifty managed to outperform, where Auto and Pharma stocks have significantly outperformed, and Nifty ended the week with gains of nearly 1%. Go ahead, We believe the ongoing positive bias should continue with elevated Nifty support can be considered near 19000 - 19100 levels for a target of 19700 - 19800 levels in the coming week. In Nifty futures, FII net longs have moved beyond 1 lac deals, the highest net longs ever seen since December 2022. Despite a marginal closure seen on Friday, the net longs remain significantly higher, and liquidation risk may keep the index under pressure in the next couple of sessions. Retail participants have also been net shorts with their highest net shorts in almost 4 years. In this scenario, some retracement towards 19100 levels cannot be ruled out which can be used against a fresh entry opportunity. On the options front, Call options were written aggressively on Friday with the 19400 Call holding the highest open interest base followed by the 19500 strike. On the upside, Nifty has already dropped below its Put base of 19400 and the IVs have remained under pressure. Hence, a round of consolidation will be more likely for Nifty in the range of 19100 - 19500 in the coming week. Despite recent weakness in worldwide markets, Indian equities have outperformed due to continued FII inflows. Any pause there may cause marginal retraction after an 800 points rally in the last two weeks. In addition to stock-specific action, upcoming quarterly results from index heavyweights may keep the focus on stock-specific action. As we are maintaining our view of consolidation, we advice traders to go for a short strangle. If the expiry comes below the range of 19165 and 19535 levels, this strategy will be in maximum profit.