Nifty futures on 4th January remained bullish to close at 21807, gaining more than 180 points. The bullishness for the day may be attributed to the upward movement experienced by the largest cap stocks in Nifty such as HDFC Bank and Reliance which moved by 1.07% and 0.52% respectively.
On Thursday, the volumes remained subdued at 6.089M but the index futures experienced a net buying of 0.875M which stood at 14.4% of the day’s volume, which may be considered huge buying considering the last 20-day volume data.
The cumulative open interest(COI) stood at 12.91M a fall of 1.3% over the previous day. A fall of open interest and a rise in prices may indicate some short covering in the index.
The index experienced buying yesterday from previous supply zones along with a high positive delta supports bullishness in the index in the forthcoming sessions. Traders may experience some volatility in the index as new buyers tend to come in at lower levels with the overall trend continuing to be bullish.