Expect lackluster market and volumes to dip - Angel Broking

Nifty spot closed at 6313.80 this week, against a close of 6274.25 last week. The Put-Call Ratio has decreased from 1.08 to 0.85 levels and the annualized Cost of Carry is positive 9.90%. The Open Interest of Nifty Futures decreased by 22.82%.

PCR-OI has decreased from 1.08 to 0.85 levels. Being start of the expiry the overall buildup is scattered but it is in range. In call options huge buildup is seen in the range of 6400-6700 strikes, some buildup is also seen in 6300 & 6800 strikes. While in put options decent buildup is seen in the range of 6000-6400 strikes. Highest buildup is seen in 6500 call & 6200 put options.

Total open interest of market has decreased from Rs. 1,63,333/- cr. to Rs. 1,05,803/- cr. Stock futures open interest has decreased from Rs. 39,076/- cr. to Rs. 34,436/- cr. Some of the liquid counters which added open interest are EXIDEIND, COLPAL, TATACOMM, GLENMARK and OFSS. Open interest was shed in large cap names like POWERGRID, HEROMOTOCO, LT, AXISBANK and ICICIBANK.

Implied Volatility (IV) for NIFTY has increased from 13.13%.to 14.07%. Historical volatility (HV) is at 20.28% and that for BANKNIFTY is trading at 34.50%. Liquid counters having very high HV are HDIL, CENTURYTEX, ORIENTBANK, BANKINDIA and AUROPHARMA. Stocks where HV are on lower side are COLPAL, DRREDDY, INFY, LUPIN and HINDUNILVR.

Nifty futures closed at a premium of 58.25 points against the premium of 83.90 points to its spot. Next month future is trading with premium of 100.20 points. Liquid counters where CoC is high are ASHOKLEY, HCLTECH, TATACHEM, FRL and UBL. Stocks with negative CoC are BHEL, JUBLFOOD, IOC and HDIL.

Source : Equity Bulls

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