Fall in IT conglomerates evened out by Banking counters: Angel Broking

Views of Mr. Jay Purohit (Technical and Derivative Analyst, Angel Broking):

"Post the gap up opening of around quarter a percent; we witnessed a corrective move in benchmark indices. The Nifty traded around 9200 mark throughout the session and ended on a flat note with marginal fall in open interest. IT sector along with few other heavyweight counters like RELIANCE and HDFC were the major draggers. On the other hand, the banking and oil marketing companies (IOC, BPCL & HINDPETRO) had shown tremendous outperformance in today's session. Further, the BankNifty added good amount of long positions, which certainly bodes well for our market.

Today, FIIs exited some of their long positions in index futures and has also covered decent amount of shorts in stock futures. However, their majority of index future longs formed in last three series are still intact in the system. On index options front, 9200, 9350 and 9400 call options added good amount of fresh positions; whereas, in put options, decent OI addition was seen in 9050 strike. Considering the strong index breadth (Advance/Decline = 32:19) and the overall activity in derivatives segment, we continue to maintain our bullish stance on the market and advise traders to look for buying opportunities on every intraday decline."

Source : Equity Bulls

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