Forget Euro, FII's shorting index now - Angel Broking

Nifty spot closed at 5553.25 this week, against a close of 5682.55 last week. The Put-Call Ratio has decreased from 0.98 to 0.81 levels and the annualized Cost of Carry is positive 6.18%. The Open Interest of Nifty Futures increased by 49.99%.

Put-Call Ratio (PCR) OI has decreased from 0.98 to 0.81 levels. The sharp fall in ratio was mainly due to significant amount of buildup seen in 5500-6000 call option and IV's of it has also increased, which according to us could be long buildup formed by the stronger hands to hedge against their short positions in index future and simultaneously considerable amount of unwinding was seen in 5600-6000 strike price which was much of short covering as IV's of put option has also increased from last week. Good amount of buildup is also seen in 5200-5500 put option on week on week basis.

Total open interest of market has increased from Rs.88,455/- cr. to Rs.1,20,914/- cr. Stock futures open interest has increased from Rs.22,008/- cr. to Rs.24,564/- cr. Some of the big names which added open interest are COALINDIA, DRREDDY, TATAPOWER, SESAGOA and ITC. Open interest was shed in large cap names like CAIRN, DLF, RELINFRA and RANBAXY.

Implied Volatility (IV) for NIFTY has increased from 13.93% to 14.90%. Historical volatility (HV) is at 17.49% and that for BANKNIFTY is trading at 25.60%. Liquid counters having very high HV are HDIL, IVRCLINFRA, PUNJLLOYD, OPTOCIRCUI and WELCORP. Stocks where HV are on lower side are LUPIN, GRASIM, TCS, ITC and FEDERALBNK.

Nifty futures closed at a premium of 18.18 points against the premium of 31.70 points to its spot. Next month future is trading with premium of 41.25 points. Liquid counters where CoC is high are GMRINFRA, ABIRLANUVO, JPPOWER, IVRCLINFRA and SAIL. Stocks with negative CoC are HAVELLS, OPTOCIRCUI, HDIL, and ULTRACEMCO.

Source : Equity Bulls

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