Markets drifted lower on Thursday on the back of depressing June IIP data coupled with dismal corporate results. There was a build up of long positions as Nifty Fut OI increased by 6,526 contracts and the premium on Nifty Aug Fut expanded to 27.1pts. FIIs too were building some longs as they were net buyers to the tune of 27crs. in the index fut segment and their OI increased.
Nifty IV dipped to 14.87% while Nifty OI PCR slid to 1.3. In the index option segment, build up of OI was seen in the 5400 calls and 5100 puts indicating expectations of a narrower trading range. Unwinding was seen in the 5500 calls and 5000 puts.
Long positions were built in stocks like Apollo Tyre, Balrampur Chini, Century textiles and Bajaj Holding. Shorts continued to be built in telecom stocks and also in stocks like Pantaloon Retail, SBI, Andhra Bank and Union bank. Technically, traders will need to watch if the Nifty can hold above the supports of 5312. Else, we could see some further correction in the markets. Upside resistances are at 5368