The Nifty 50 (18,350), by gaining 1.3 per cent last week, has closed in the green for four weeks in a row. The Nifty Bank (2.1) was even better, as it has now gained for six weeks consecutively. The derivatives data also show a positive bias.

Nifty 50: The cumulative Open Interest (OI) of Nifty futures on the NSE went up to 143.7 lakh contracts on Friday compared with 134.4 lakh contracts a week ago. It happened along with a rally indicating long build-up — the Nifty November futures rallied to 18,439 from 18,194. The option chain of the nearest weekly expiry — November 17 expiry shows that the Put Call Ratio (PCR) stands at 1.06, giving it a bullish inclination. The 18300-strike put option has seen good short build-up which will now act as a strong support.

Nifty Bank: The cumulative OI of Nifty Bank futures increased to 30.9 lakh contracts on Friday versus 24.1 lakh contracts by the end of the preceding week. The November futures rallied to 42,295 from 41,419 showing a long build-up. The PCR of weekly options is at 1.15, a bullish sign. There is a strong short build-up on the 42000-strike put option (November 17 series) and thus it will be a support.

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