Views of Ms. Sneha Seth (Derivative Analyst, Angel Broking):
"The key benchmark indices clocked a fresh record high in the early morning trade today; bolstered by telecom and banking stocks. During the day, index mounted towards 10450 mark and concluded the session with gains of 105 points. We saw fresh long formation in index; especially in the BankNifty wherein open interest surged by 21% today.
As far as Nifty options activity is concerned, we saw decent amount of open interest addition in 10500 call strike; resulting highest open interest in call option shifting back to 10500 from 10400. At the same time, we also saw some build-up in 10700 and 10900 call options. On the flip side, 10000-10400 put options added good amount of positions. Now, maximum concentration in put options is placed firmly at 10000; followed by 10200.
November series began with long rollovers and we have also been witnessing decent long addition in index futures in last couple of days. Now, PCR-OI has increased to 1.50, due to consistent open interest addition in put strikes. Looking at participant wise activity, it seems that FIIs have been writing index put options expecting continuation of ongoing momentum. At present, we would advise traders to avoid shorting in the index and focus on individual stocks as they have better risk-reward ratio."