Too much of noise less of action; buy on dips - Angel Broking

Nifty spot closed at 5908.35 this week, against a close of 5847.70 last week. The Put-Call Ratio has decreased from 1.03 to 1.00 levels and the annualized Cost of Carry is positive 8.39%. The Open Interest of Nifty Futures decreased by 27.71%.

Put-Call Ratio Analysis

PCR OI has decreased from 1.03 to 1.00 levels. In new series we have observed good amount of buildup in 6000-6200 call option. While in put option of late in Friday's trade the activity has started picking up and saw significant amount of buildup in 5500-5900 strike price. Highest buildup in open interest for this series too is in 5800 put option and 6000 call option, which will act the support and resistance respectively going forward.

Open Interest Analysis

Total open interest of market has decreased from Rs.1,66,627/- crores to Rs.1,08,052/- crores. Stock futures open interest has decreased from Rs.41,457/- crores to Rs.34,863/- crores. Some of the liquid counters which added open interest are SUZLON, JISLJALEQS, IVRCLINFRA, TATAMTRDVR and TATAGLOBAL. Open interest was shed in large cap names like TATAPOWER, INFY, BHARTIARTL, TCS and ACC.

Implied Volatility Analysis

Implied Volatility (IV) for NIFTY has decreased from 13.03% to 12.65%. Historical volatility (HV) is at 14.68% and that for BANKNIFTY is trading at 18.14%. Liquid counters having very high HV are KTKBANK, MCDOWELL-N, UNITECH, PANTALOONR and SUZLON. Stocks where HV are on lower side are COALINDIA, SIEMENS, DRREDDY, POWERGRID and HDFCBANK.

Cost-of-Carry Analysis

Nifty futures closed at a premium of 46.20 point against the premium of 56.75 points to its spot. Next month future is trading with premium of 82.10 points. Liquid counters where CoC is high are WELCORP, GMRINFRA, NHPC, VOLTAS and PUNJLLOYD. Stocks with negative CoC are WIPRO, NTPC and SIEMENS.

Source : Equity Bulls

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