Expect range bound but volatile movements - Angel Broking

Nifty spot closed at 5808.40 this week, against a close of 5881.00 last week. The Put-Call Ratio has decreased from 0.99 to 0.95 levels and the annualized Cost of Carry is negative 1.18%. The Open Interest of Nifty Futures increased by 26.25%.

PCR-OI has decreased from 0.99 to 0.95 levels. The fall in ratio was due to significant amount of buildup observed in 5700-6000 call option, while simultaneously 5900-6100 put option has seen considerable amount of unwinding which was much of short covering. In the week gone by 5400, 5500 and 5700 put option has also seen good amount of buildup in open interest. Highest buildup for this series is in 6000 call option and 5700 put option.

Total open interest of market has increased from Rs 1,29,384/- cr. to Rs. 1,44,787/- cr. Stock futures open interest has increased from Rs. 29,687/-cr. to Rs. 30,014/- cr. Some of the big names which added open interest are ICICIBANK, AXISBANK, HEROMOTOCO, KOTAKBANK and TATASTEEL. Open interest was shed in large cap names like WIPRO, MARUTI, BPCL, CIPLA and AMBUJACEM.

Implied Volatility (IV) for NIFTY has increased from 16.53% to 17.39%. Historical volatility (HV) is at 20.42% and that for BANKNIFTY is trading at 27.16%. Liquid counters having very high HV are OPTOCIRCUI, APOLLOTYRE, RENUKA, TITAN and JINDALSTEL. Stocks where HV are on lower side are TATACHEM, ABIRLANUVO, CAIRN, ACC and PETRONET.

Nifty futures closed at a discount of 2.45 points against the premium of 15.65 points to its spot. Next month future is trading with premium of 15.40 points. Liquid counters where CoC is high are UNITECH, MCDOWELL-N, OPTOCIRCUI, PTC and IVRCLINFRA. Stocks with negative CoC are DENABANK, VIJAYABANK, UNIONBANK, BANKINDIA and IOB.

Source : Equity Bulls

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