FIIs 'Long Short Ratio' rose to 85% in Index Futures: Angel Broking

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

"The June series began with high rollovers in Nifty, indicating undertone to remain positive. Today, post the flat opening, the Nifty continued its previous day's momentum and moved above the 9600 mark with an ease. However, the open interest activity in both Nifty and BankNifty remained subdued. Expect some pain in Pharma index, all other sectoral indices ended well in the positive territory.

On Nifty options front, 9600-10000 call options added good amount of positions; while, in put option, significant open interest addition was visible in 9500, 9400 and 9600 strikes respectively. At current juncture, highest OI in June series is placed 9600 call; while, in put options, it got shifted from 9300 to 9400 strike, indicating base inching higher.

FIIs too participated in today's rally as they were net buyer in index future segment worth Rs. 884 crores with fall in open interest, indicating good amount of short covering in index futures. In last two sessions, FIIs have exited more than two third of their short positions in index future and added some fresh longs. As a result, their 'Long/Short Ratio' has rose to 85.20%, indicating continuation of their optimistic stance on our market. At the same time, FIIs added decent amount of longs in index call options in today's session. Considering overall derivative activity, we remain upbeat on the market and thus, advice traders to trade with a positive bias."

Source : Equity Bulls

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