Finally Nifty surpassed 11850; courtesy to Banking and Metals space: Angel BrokingDerivatives view by Ms. Sneha Seth (Derivatives Analyst, Angel Broking):
"Post yesterday's strong recovery from the support of 11650, we began today's session slightly lower. However, we witnessed a strong bout of buying in the early morning trade to rally towards the hurdle of 11840. The benchmark index consolidated in the midst and then we saw follow-up move to surpass the above-mentioned hurdle on the closing basis.
Today the banking index outperformed the benchmark, both private as well as PSU banks, displayed strength throughout the day. Especially, HDFCBANK and ICICIBANK were the major contributors in today's rally. The metal index rallied almost 3% in today's session and if we glance at the daily chart, it has surpassed the falling trend resistance. Now, considering the quantum of buying in individual metal counters, we expect further upside going ahead.
Despite some weaknesses in the initial part of the June series, we hardly saw any relevant selling in the indices. We believe the majority of the positions formed in Nifty and BankNifty are on the long side. However, stronger hands added shorts in index futures resulting their 'Long Short Ratio' declining from 60% to 55% in current series. Simultaneously, they were net buyers in stock futures with decent margin. Since past two consecutive sessions, we have been observing decent unwinding in ATM and OTM calls along with fresh writing in ATM puts, this development is certainly a positive indication for the Bull's. Considering, the above data point we expect the extension of this upmove towards 12000."