Nifty PCR OI corrects sharply at 0.81 - Aditya Birla Money

NIFTY PCR OI corrects sharply at 0.81 (approaching six month low 0.78), with 5600 and 5700 CE saw addition of 11 and 10 lakh shares total OI 50 and 80 lakh shares on other hand 5600 PE saw aggressive unwinding of 12 lakh shares with total OI at 58 lakh shares (PCR-OI of 5600 at 1.1) implying immediate short term NIFTY will find resistance at 5630-5660 zone.

INDIA VIX moved up 2% at 16.1 back above 16 levels, we have to watch for if moves above 16-16.5 and sustain above this levels, Bears will have upper hand put pressure on NIFTY may retest at 5450-5500 levels.

FIIs continue to be sellers in NIFTY Fut. Rs 1106 Cr. (shorts continue to be seen last 2 days sold 2886 Cr.); as we enter new series INDEX Options continues to witness buying 367 Cr (hedging continues as VIX sustain above 15.5 levels, implying FIIs expect volatility to increase ), stock futures saw buying 120 Cr; sellers continue in cash to the tune of 203 Cr. momentum on cash front coming down with hedging in NIFTY gaining momentum expecting VIX to find support, implying NIFTY may retest 5550-5600 levels.

Over all CE writers build their positions moving south; Index resistance at 5630-5660 levels.

Source : Equity Bulls

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