5750-5800 is strong resistance. Sell on rise - Angel Broking

Nifty spot closed at 5682.55 this week, against a close of 5651.35 last week. The Put-Call Ratio has increased from 0.82 to 0.98 levels and the annualized Cost of Carry is positive 7.27%. The Open Interest of Nifty Futures decreased by 33.44%.

PCR OI has increased from 0.82 to 0.98 levels. In the new series we have observed good amount of buildup in 5600-6000 call option, while in put option 5200-5700 strikes has seen significant amount of buildup in open interest on week on week basis. Highest buildup in open interest for this series is in 5600 put option, while in call option the buildup is quite scattered between 5700, 5900 and 6000 strike price however 5700 call option has the maximum open positions as of now.

Total open interest of market has decreased from Rs.1,54,863/- cr. to Rs.88,455/- cr. Stock futures open interest has decreased from Rs.28,714/- cr. to Rs.22,008/- cr. Some of the liquid counters which added open interest are RELINFRA and CAIRN. Open interest was shed in large cap names like AMBUJACEM, SAIL, ACC, HCLTECH and TATAMOTORS.

Implied Volatility (IV) for NIFTY has decreased from 14.39% to 13.93%. Historical volatility (HV) is at 16.06% and that for BANKNIFTY is trading at 26.06%. Liquid counters having very high HV are HDIL, PUNJLLOYD, OPTOCIRCUI, IVRCLINFRA and NHPC. Stocks where HV are on lower side are ITC, DRREDDY, SUNPHARMA, LUPIN and TCS.

Nifty futures closed at a premium of 31.70 points against the premium of 55.25 points to its spot. Next month future is trading with premium of 50.30 points. Liquid counters where CoC is high are RENUKA, WELCORP, NHPC, ASHOKLEY and CHAMBALFERT. Stocks with negative CoC are OPTOCIRCUI, HAVELLS, HDIL, PUNJLLOYD, and ULTRACEMCO.

Source : Equity Bulls

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