Markets are consolidating, not correcting - Angel Broking

Nifty spot closed at 6494.90 this week, against a close of 6504.20 last week. The Put-Call Ratio has decreased from 1.11 to 1.03 levels and the annualized Cost of Carry is positive 19.39%. The Open Interest of Nifty Futures increased by 9.35%.

PCR-OI has decreased from 1.11 to 1.03 last week. This fall in ratio is mainly due to good amount of buildup call options. Last week we saw good amount of buildup in 6600 strike, some buildup was also seen in 6500 & 6700 strikes. In put options we hardly saw any buildup, maximum buildup was seen in 6400 strike, followed by decent amount of unwinding in 6600 strike. Maximum built-up is currently accumulated at 6600 call & 6400 put of this series.

Total open interest of market has increased from Rs. 1,63,486/- cr. to Rs. 1,74,182/- cr. Stock futures open interest has increased from Rs. 37,456/- cr. to Rs. 40,034/- cr. Large cap names which added significant positions last week are GAIL, ONGC, COALINDIA, AXISBANK and ITC. On the other hand unwinding was visible in counters like TATASTEEL, DRREDDY, RELINFRA, KOTAKBANK and ICICIBANK.

Implied Volatility (IV) for NIFTY has increased from 12.83%.to 13.02%. Historical volatility (HV) is at 13.65% and that for BANKNIFTY is trading at 28.99%. Liquid counters having very high HV are JPPOWER, JPASSOCIAT, HDIL, DLF and ADANIENT. Stocks where HV are on lower side are CAIRN, NHPC, COLPAL, HINDUNILVR and OFSS.

Nifty current month futures closed at a premium of 17.25 points against the premium of 34.65 points to its spot. Next month future is trading with premium of 66.55 points. Liquid counters where CoC is high are SRTRANSFIN, FEDERALBNK, HDFCBANK, NHPC and CIPLA. Stocks with negative CoC are AXISBANK, ACC, ONGC, BHEL and ASHOKLEY.

Source : Equity Bulls

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