Due to higher volatility, premium in Nifty futures remained intact for most of the week while options accumulation pattern has shifted marginally downwards. Highest accumulation for Put options still lies at 5300 and 5400 strikes evenly. At the same time, Call option 5500 strike will pose major resistance at higher levels.
The data indicates:-
- High put option open interest build up of around 8.1 mn and 6.6 mn is seen at 5300 and 5200 strikes respectively, indicating that they will act as strong supports.
- High call option open interest build up of around 9.1 mn and 7.7 mn is seen at 5500 and 5600 strikes respectively, indicating that they will act as strong resistances.
- Nifty is trading at a premium of 13-14 points as compared to a premium of 14-15 points as of the previous trading week.
- The PCR for Nifty based on open interest was down at 1.14 as compared to 1.28 as of the previous trading week.
- The PCR for Nifty based on Volumes was down at 0.92 as compared to 1.13 as of the previous trading week.
- Nifty Futures open interest saw a increase of around 4.71%.
- In Index Futures FII’s were net sellers to the tune of Rs. 313 Cr with an open interest increase of around Rs. 1121 Cr as compared to net selling of Rs. 1992 Cr with an open interest increase of around Rs. 141 Cr as of the previous trading week.
- Long build up was seen in Textiles, Telecom, Power and Media.
- Short build up was seen in Auto, Metals, IT and Finance.
- Short Covering was seen in Cement.
- Long Unwinding was seen in Banking, FMCG, Infra, Sugar, Oil & Gas, Shipping, Real Estate, Capital Goods, Pharma and Chemicals & Fertilizers.
Following links may kindly be read for better explanation:
WEEKLY REPORT FROM: "ADITYA BIRLA MONEY"; "BONANZA ONLINE"; "PINC RESEARCH"; "MICROSEC RESEARCH"
FIVE TOP PICKS FROM EDELWEISS:
Reliance Industries (RIL) - Target: Rs 1,150
Tata Motors - Target: Rs 1,360
BHEL - Target: Rs 2,650
M&M - Target: Rs 900
ITC - Target: Rs 200
