PCR-OI surged 11% amid broad base meltdown: Angel Broking

Derivatives view by Mrs. Sneha Seth (Derivatives Analyst, Angel Broking):

"Post Friday's fall, we began today's session on a flat note and saw some consolidation in the first half. As the day progressed, broad base sell-off was seen to drag the index almost towards the 11200 mark. The volatility index surged 11% seeing the uncertainty in the market. BankNifty continues to be the spoilsport, it corrected another 3% in today's session and also added a good amount of short positions.

Last week, we merely saw any relevant shorts in the corrections seen in Nifty. However, today's fall was supported with a decent amount of shorts. The PCR-OI plunged to 1.07 during the day due to massive writing in 11300-11600 call options along with unwinding in 11400-11600 puts. On the put side, 11050 put strike was active and also added meaningful positions. The maximum open interest concentration is now seen in 11500 call and 11000 put options. At present, immediate support is placed around 11200 mark and considering today's sell-off we would advise traders avoiding any kind of bottom fishing and rather stay light in the market."

Source : Equity Bulls

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