5800-5850 in Nifty is an accumulation zone - Angel Broking

Nifty spot closed at 5850.30 this week, against a close of 5887.40 last week. The Put-Call Ratio has decreased from 0.96 to 0.88 levels and the annualized Cost of Carry is positive 3.80%. The Open Interest of Nifty Futures increased by 15.55%.

PCR OI has decreased from 0.96 to 0.88 levels. The fall in ratio was mainly due to significant amount of buildup observed in 5800-6000 call option and simultaneously considerable amount of unwinding was seen in 5900-6000 put option which was much of short covering. 5600 and 5800 put option has also seen decent amount of buildup in open interest on week on week basis. Highest buildup in open interest is now at 6000 call option and 5800 put option.

Total open interest of market has increased from Rs. 1,43,764/- cr. to Rs. 1,57,436/- cr. Stock futures open interest has increased from Rs. 33,358/- cr. to Rs. 35,608/- cr. Some of the large cap names which added open interest are HEROMOTOCO, JINDALSTEL, AMBUJACEM, TATASTEEL and BAJAJ-AUTO. Open interest was shed in large cap names like POWERGRID, GAIL, BPCL, JPASSOCIAT and NTPC.

Implied Volatility (IV) for NIFTY has increased from 12.90% to 16.38%. Historical volatility (HV) is at 12.48% and that for BANKNIFTY is trading at 16.68%. Liquid counters having very high HV are HDIL, UNITECH, SUZLON, IVRCLINFRA and OPTOCIRCUI. Stocks where HV are on lower side are DABUR, ASIANPAINT, ITC, HDFCBANK and KOTAKBANK.

Nifty futures closed at a premium of 3.65 points against the premium of 5.25 points to its spot. Next month future is trading with premium of 34.70 points. Liquid counters where CoC is high are SUZLON, ABIRLANUVO, PUNJLLOYD, WELCORP and ADANIPOWER. Stocks with negative CoC are HAVELLS, NMDC, OPTOCIRCUI, SUNPHARMA and JPPOWER.

Source : Equity Bulls

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