Volatility on cards: Angel Broking

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

"Unlike previous five expiry days, finally, we witnessed some decent price action (for traders) today. The benchmark index opened with a downside gap owing global cues and was under pressure throughout the day to conclude the session below 10250 mark.

After hitting lows of 10100 the index recovered in the midst of the November series; but, we hardly saw any relevant buying interest in F&O segment. During this period, FIIs formed good amount of short positions in index and stock futures along with decent longs in index put options.

Now, Nifty Futures Rollover (63.28%) is on the lower side in terms of percentage as well as open interest; suggesting decent amount of positions have been lightened up ahead of upcoming events like RBI and US Fed interest rate meets, and more importantly, Gujarat poll results. FIIs too unwound decent amount of their positions, resulting decline in their index futures open interest by 37% series on series. However, they rolled over good amount of their short positions formed in stock futures last series.

For December series, maximum open interest concentration is placed at 10500 followed by 10400 call options; while, in put options it's at 10000 followed by 10200 strike. Considering the overall rollover activity, we believe market may remain volatile going ahead and 10300-10350 may now act as an immediate hurdle for the index."

Source : Equity Bulls

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