Retail participants on driver's seat: Angel Broking

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

"Our market opened on a subdued note; however, sharp selling got attracted thereafter to drag Nifty below 10100 mark. Eventually, index recouped its losses in the remaining part of the trade to conclude with a minor cut of 19 points.

As far as index futures are concerned, we could hardly trace any relevant open interest activity in both Nifty as well as BankNifty in today's session. In Nifty options front, huge OI addition was visible in 10100 strikes; followed by some unwinding in 10500 call option. On the flip side, none of the strikes of put option added relevant positions; but, some unwinding was seen in 10000-10200 put options. Maximum concentration of open interest stands firm at 10200 call and 10000 put options.

Although, the benchmark indices gained nearly 2% in September series along with good amount of long additions, stronger hands remained pessimistic and were sellers in equities as well as index futures segment. They curbed liquidity to the tune of Rs. 11,832 crores during the series. At the same time, they have nearly doubled their shorts in index futures, resulting 'Long Short Ratio' declining to 53% from 71% seen during beginning of current series. Looking at the above data, we believe weaker hands are driving the market at present; which certainly makes us uncomfortable to trade in index. However, momentum in individual stocks propels us to prefer stock specific approach."

Source : Equity Bulls

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