Index futures appears long heavy: Angel Broking

Derivative Write-up by Ms. Sneha Seth (Derivatives Analyst, Angel Broking):

"As indicated by the global peers, the benchmark index started-off the session on a positive note. However, this gains was short lived as we witnessed decent profit booking from the hurdle of 11550-11600 and in the process Nifty tanked below 11450 mark. In the final hour, index consolidated to end the session with a cut of 0.56%.In Index futures segment, we witnessed some long unwinding in both Nifty as well as BankNifty. Meanwhile, 11600 call option added huge positions which in turn shifted the highest open interest concentration from 11500 to 11600 strike. Some build-up was also seen in 11500, 11650 and 11700 call options. On the other side, we saw fresh open interest addition in 11450 and 11600 put options along with unwinding in 11500 strike.In the week gone by, index consolidated in the range of 11400-11600 and we saw some profit booking around the resistance zone of 11550-11600. At present, the outstanding contracts in Index futures are long heavy and as we are approaching near the expiry, some long unwinding was on cards. Going ahead, 11600 shall act as a strong hurdle for index; whereas, 10380-10400 is an immediate base."

Source : Equity Bulls

Keywords