Derivative Write-up by Ms. Sneha Seth (Derivatives Analyst, Angel Broking):
"After gaining strength in later half of Tuesday, we started-off today's session slightly higher above 11550 mark. During the day, index remained quite choppy and consolidate in the range of merely 60 points. However, the banking index continued to outperform the benchmark index and concluded the session at the highest point ever.
The open interest activity for both Nifty as well as BankNifty was muted during the day. As far as Nifty options activities are concerned, 11500-11800 call options added good amount of fresh positions. Now, considering the declining INDIAVIX we believe these is writing taking place. On the flip side, we saw decent build-up in 11400-11500 put options.
Since the beginning of March series, we have been witnessing huge amount of long formation and now it seems we are long heavy. However, stronger hands continued pouring liquidity in equities and have been adding good amount of longs in index future segment. At present, their 'Long Short Ratio' stands at 63% after quite some time. But, looking at the quantum of outstanding trades in the system we won't be comfortable in initiating fresh longs now and would in fact, advise traders to keep booking profit at higher levels."