FII's continue to be net buyers in cash market - Angel Broking

FII's continue to be net buyers in cash market segment; they were net buyer's worth of Rs.611/- cr. On derivatives front long unwinding was seen by them in index futures and in stock futures some long buildup was observed by them. While in index option they were net sellers in yesterday's trade.

On options front 5900 and 6000 put option has seen significant amount of buildup in open interest, followed by decent amount of unwinding observed in 5700 put option. While in call option 6200 strike price saw maximum buildup in open interest and 6000-6100 call option has seen considerable amount of unwinding in yesterdays trading session.

The counter of TATASTEEL has became very much heavy in terms of open interest since last few trading session indicating good amount of short positions created in this stock. We feel the counter could take support at around Rs.418-420 levels as 420 put option has highest buildup in open interest and with IV's coming down most of this buildup could be on the shorter side and simultaneously call IV has seen going up indicating long buildup seen in call option. Hence we feel the counter could see short covering bounce from current level which could take the stock to around Rs.448. Go long at around Rs.424-426 levels with the stop loss of Rs.415.

Source : Equity Bulls

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