Research Reports

Markets could open higher

Markets moved up sharply last Friday ahead of Greek elections and RBI policy on Monday. There was a build up of longs as Nifty Fut OI increased by 22,052 contracts and the premium on Nifty June Fut expanded to 8.65pts. FIIs too were building longs as they were net buyers to the tune of 197crs. in the index fut segment and their OI rose.

Nifty IV climbed to 27.21% while Nifty OI PCR shot up to 1.76. This ratio is now approaching overbought territory which calls for caution. In the index option segment, maximum OI continues to be seen outstanding in the 5200 calls and 4800 puts, indicating this is the expected trading range.

In the stock fut segment, there was a build up of longs in GMDC, Renuka and JSW Energy. Shorts were built in Sterlite, Bajaj auto, Arvind and Ashok Leyland. Technically, with the Nifty holding above the 5020-5000 levels and closing with strong gains on Friday, the bulls do seem to have an upper hand. Immediate upside targets are at 5180-5200.