Start of day Derivatives Commentary
Markets could open flat
Tue Aug 07, 2012 at 08:53 AM
Markets began the week on a positive note. There was however a build up of shorts as Nifty Fut OI increased by 3,402 contracts and the premium on Nifty Aug Fut narrowed to 14.3pts. FIIs were building longs as they were net buyers to the tune of 381crs. in the index fut segment and their OI rose.
Nifty IV dipped to 15.4% while Nifty OI PCR further slid to 1.22. 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. Unwinding was seen in the 5200 calls and 4800 puts.
Sectorally, long positions were built in the Textile sector and also in stocks like Reliance, REC, Bombay Dyeing and GSPL. Shorts were built in Banking stocks and also in stocks like BPCL, Bajaj Holding, Andhra Bank and Idea Cellular. Technically, with the Nifty moving above the previous short term highs of 5258, the underlying short term trend has turned up. Immediate upside targets for the Nifty are now at the next intermediate highs of 5349. Downside supports are at 5252
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