Nifty Future Open Interest increases by 4.72% - Angel Broking

The Nifty futures open interest increased by 4.72% while BankNifty futures open interest is increased by 0.30% as market closed at 5558.70 levels.

The Nifty Apr. future closed at premium of 5.15 point against a premium of 5.75 points. The May series closed at a premium of 24.30 points.

The Implied Volatility of at the money options has decreased from 16.42% to 16.21%.

Nifty PCR-OI has increased from 0.83 to 0.88 levels.

The total OI of the market is Rs. 1,33,912/- cr. and the stock futures OI is Rs.25,648/- cr.

Few of the liquid counters where we have seen high cost of carry are WELCORP, HINDZINC, GMRINFRA, JISLJALEQS and ASHOKLEY.

FII's were net buyers in yesterday's trade, however the quantum of buying was quite less; they were net buyers worth of Rs.20/- cr only. On derivatives front some short buildup was observed by them in both index futures and in index options, followed by some short covering in stock futures in yesterday's trade.

On options front 5300-5500 put option has seen considerable amount of buildup in open interest, since IV's have gone down the buildup could be on the shorter side. While in call option not much of buildup was observed, however decent amount of unwinding was seen 5500, 5700 and 5800 call option in yesterday's trading session.

TATASTEEL has seen good amount of short buildup in last few trading sessions. However in yesterday's trade the stock has seen some long buildup with increase in cost-of-carry. Hence we feel the counter could see some short covering bounce from current levels which could take the stock to around Rs.325. Go long with the stop loss of Rs297.

Source : Equity Bulls

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