Start of day Derivatives Commentary
Markets take a breather
Fri Aug 03, 2012 at 08:41 AM
Markets ended marginally lower on Thursday after a range bound session. There was nevertheless a continued build up of longs as Nifty Fut OI increased by 5,178 contracts and the premium on Nifty Aug Fut expanded to 15.8pts. FIIs were however building shorts as they were net sellers to the tune of 87crs. in the index fut segment and their OI rose.
Nifty IV increased to 16.14% while Nifty OI PCR slid to 1.28. In the index option segment, maximum OI continues to be seen in the 5500 calls and 5000 puts indicating that this broadly remains the expected trading range.
Sectorally, long positions were built in the Healthcare and Engineering sectors and also in stocks like Cummins, NTPC, GVKPIL and IVRCL Infra. Shorts were built in Bharat Forge, IGL and Fortis. Technically, markets seem to have taken a breather after four consecutive sessions of gains. The previous short term highs of 5258 remain crucial levels to watch as a close above these levels would reverse the current downtrend and lead to a fresh uptrend. Weakness could emerge if the immediate supports of 5210 are broken.
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