Liquidity is strong, but be stock specific - Angel Broking

Nifty spot closed at 6107.25 this week, against a close of 5944.00 last week. The Put-Call Ratio has increased from 1.12 to 1.22 levels and the annualized Cost of Carry is positive 8.08%. The Open Interest of Nifty Futures decreased by 22.49%.

PCR-OI has increased from 1.12 to 1.22 levels. The rise in ratio was due to significant amount of buildup observed in 5700-6100 put option and simultaneously 5900-6000 call option has seen considerable amount of unwinding which was much of short covering. Good amount of buildup was also observed in 6200-6400 call option on week on week basis. Highest buildup in open interest is in 6200 call option and 5800 put option.

Total open interest of market has increased from Rs. 1,31,026/- cr. to Rs. 1,53,713/- cr. Stock futures open interest has increased from Rs. 27,525/- cr. to Rs.31,049/- cr. Some of the big names which added open interest are LUPIN, HDFC, DRREDDY, COALINDIA and ACC. Open interest was shed in large cap names like STER, WIPRO, TATASTEEL, and HINDALCO.

Implied Volatility (IV) for NIFTY has increased from 14.08% to 14.21%. Historical volatility (HV) is at 17.28% and that for BANKNIFTY is trading at 27.39%. Liquid counters having very high HV are RCOM, HDIL, IVRCLINFRA, INFY and HINDUNILVR. Stocks where HV are on lower side are TATAPOWER, TATACHEM, PETRONET, CIPLA and NTPC.

Nifty futures closed at a premium of 25.70 points against the premium of 4.25 points to its spot. Next month future is trading with premium of 66.10 points. Liquid counters where CoC is high are JSWENERGY, JPPOWER, GRASIM, TATACOMM and GMRINFRA. Stocks with negative CoC are ICICBANK, INFY, YESBANK, SBIN and UCOBANK.

Source : Equity Bulls

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