Expect short covering above 6150-6200 - Angel Broking

Nifty spot closed at 6020.95 this week, against a close of 5907.30 last week. The Put-Call Ratio has increased from 1.09 to 1.10 levels and the annualized Cost of Carry is positive 10.27 %. The Open Interest of Nifty Futures increased by 7.04%.

PCR-OI has increased from 1.09 to 1.10 levels. In call options good amount of buildup was seen in the range of 6200-6500 strikes followed by some unwinding in lower strikes. While in put options good amount of buildup was seen in 5900-6100 strikes, some buildup was also seen in 5700 & 6200 strikes. Highest buildup is seen in 6100 call & 5700 put options.

Total open interest of market has increased from Rs. 1,20,908/- cr. to Rs. 1,38,636/- cr. Stock futures open interest has increased from Rs. 24,781/- cr. to Rs. 29,218/- cr. Some of the large cap which added open interest are WIPRO, CAIRN, BAJAJ-AUTO, ACC and IDFC. Open interest was shed in large cap names like JINDALSTEL, ONGC, BPCL, HDFC and KOTAKBANK.

Implied Volatility (IV) for NIFTY has decreased from 24.79%.to 21.05%. Historical volatility (HV) is at 28.20% and that for BANKNIFTY is trading at 50.85%. Liquid counters having very high HV are FINANTECH, RANBAXY, YESBANK, HDIL and JPPOWER. Stocks where HV are on lower side are OFSS, CIPLA, HEXAWARE, CAIRN and DRREDDY.

Nifty futures closed at a premium of 34.30 points against the premium of 43.60 points to its spot. Next month future is trading with premium of 79.60 points. Liquid counters where CoC is high are UNITECH, IOB, BHARATFORG, INDIACEM and JISLJALEQS. Stocks with negative CoC are IFCI, HDIL, HAVELLS, BHEL and FINANTECH.

Source : Equity Bulls

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