No meaningful change in F&O date, wait and watch - Angel Broking

Nifty spot closed at 10210.85 this week, against a close of 10167.45 last week. The Put-Call Ratio has decreased to 1.62 from 1.63 levels and the annualized Cost of Carry is positive at 11.91%. The Open Interest of Nifty Futures increased by 2.15%.

Derivatives View

Nifty current month future closed with a premium of 26.65 points against a premium of 24.95 points to its spot. Next month future is trading with a premium of 56.90 points.

PCR-OI has declined from 1.63 to 1.62 on week on week basis. In call option, 10300 and 10400 strikes added some fresh positions; followed by some unwinding in 9900-10100 call options. While, in put options, 10200 and 10300 strikes were most active and they also added significant positions. In addition, some open interest addition was also witnessed in 10000 put option. At present, maximum open interest concentration for October series is placed at 10200 followed by 10300 call option and for put option firmly stands at 10000 strike.

The benchmark index continue to rally and hits a new record high along with some open interest additions, suggesting continuation of long formation during preceding week. FIIs too actively participated in recent upmove by forming fresh long positions in index futures. At the same time, they formed fresh longs in call options along with writing in puts. Looking at the F&O activity in October series, we believe market may continue its ongoing momentum unless we see relevant change in data.

Source : Equity Bulls

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