Research Reports

Markets could open higher

Markets ended on a flat note on Tuesday after a rangebound session. There was a build up of longs as Nifty Fut OI increased by 27,050 contracts and the June Fut closed at a premium of 4.9pts. FIIs too were building longs as they net buyers to the tune of 800crs. in the index fut segment and their OI increased.

Reflecting range bound expectations, the Nifty IV dipped to 19.42%. Nifty OI PCR climbed to 1.71. In the index option segment, maximum OI continues to be seen in the 5200 calls and 4800 puts, indicating this is the expected trading range.

Sectorally, there was a build up of longs in Media and Banking stocks. More specifically, there was a build up of longs in stocks like Tata Global, Uni Phos, Divis Lab and GSPL. Shorts were built in Essar Oil, GE Shipping and Sintex. Technically, with the Nifty holding above the 5100 levels, the markets look set to remain range bound at least for the next few sessions. Our hypothesis would turn wrong if these supports are broken.