Base shifted lower to 9400 in July series: Angel Broking

Views of Ms. Sneha Seth (Derivative Analyst, Angel Broking):

"The Benchmark index started off June series with high long rollovers; however, we hardly witnessed any relevant activity during major part of the series. Nifty is merely up 23 points (series on series) with marginal change in open interest. Rollover in Nifty is slightly higher than its averages in terms of percentage as well as open interest; suggesting longs formed in last couple of series have been rolled to July series too.

As far as FIIs activity is concerned, they rolled nearly 76% of their long positions (in index futures) and at the same time, they exited 57% of their short position formed in last series. As a result, their index futures 'Long Short Ratio' have again shot up from 72% to 82%. However, FIIs curbed liquidity in cash market segment as they sold equities worth Rs. 3890 crores in June series.

In index options segment, maximum concentration of open interest in put options is at 9400 strike, indicating the base in July series has shifted lower. While, highest open interest in call options is scattered between 9500-1000. Considering overall options activity, we believe Nifty may trade in a range of 9400-9700 for initial part of July series, trade accordingly."

Source : Equity Bulls

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