FII's squared-off their shorts and formed long - Angel Broking

Nifty spot closed at 5680.40 this week, against a close of 5471.80 last week. The Put-Call Ratio has increased from 1.22 to 1.28 levels and the annualized Cost of Carry is positive 5.59%. The Open Interest of Nifty Futures increased by 7.83%.

PCR-OI has increased from 1.22 to 1.28 levels. This ratio has mainly increased due to significant amount of buildup in the range of 5400- 5600 put strikes. In call options we have witness some buildup in the range of 5700-5900 strikes last week. FII's have seen covering their short positions in index future last week and on Friday's trading session we have also seen good amount of long buildup by them in index future. In index option FII's have been selling 5500 & 5600 put strikes. Highest buildup is seen in 5700 call & 5300 put options.

Total open interest of market has decreased from Rs 1,10,983/- cr. to Rs. 1,33,913/- cr. Stock futures open interest has decreased from Rs. 26,466/- cr. to Rs. 29,441/- cr. Some of the large cap which added open interest are TATAPOWER, SIEMENS, ACC, HDFCBANK and RELIANCE. Open interest was shed in large cap names like IDFC, AXISBANK, SESAGOA, CAIRN and BANKBARODA.

Implied Volatility (IV) for NIFTY has increased from 24.29%.to 25.93%. Historical volatility (HV) is at 36.35% and that for BANKNIFTY is trading at 62.91%. Liquid counters having very high HV are FINANTECH, JPPOWER, YESBANK, HDIL and OPTOCIRCUI. Stocks where HV are on lower side are OFSS, INFY, WIPRO, M&M and JUBLFOOD.

Nifty futures closed at a premium of 17.40 points against the discount of 15.05 points to its spot. Next month future is trading with premium of 43.60 points. Liquid counters where CoC is high are UNIPHOS, INDIACEM, RPOWER, AUROPHARMA and MCLEODRUSS. Stocks with negative CoC are HDIL, NMDC, FINANTECH, BHEL and KOTAKBANK.

Source : Equity Bulls

Keywords