No meaningful change in derivative data despite recent corrective move: Angel Broking

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

"Our market started the session on flat note and failed to sustain at higher levels, which eventually resulted into a gradual decline throughout the remaining part of the day to close at the lowest point of the day. But, once again, the correction in Nifty was mainly led by long unwinding instead of fresh shorting, which is not a sign of concern for the Bulls. The Metal and IT counters underwent a severe pain with huge short build-ups on the back of sharp sell-off seen in base metal prices and quarterly result of the IT giant 'Infosys', respectively. On the other hand, the BankNifty ended on a muted note and added good amount of fresh positions. Today, FII's covered some of their short positions in index futures and similar to previous session, continued adding long positions in index put options. However, their index future longs formed in last couple of series are still intact in the system, which is an encouraging sign.

As far as overall activity in index options is concerned, 9200 and 9300 call options were active and OI addition was visible in the same; whereas, some unwinding was seen in 9050, 8900 and 8800 put options. Though, Nifty is hovering around its strong support zone of 9150-9200; we are not seeing any meaningful activity from FIIs' desk. Thus, market seems to be waiting for fresh buying from stronger hands in order to resume its upward momentum."

Source : Equity Bulls

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