Market still in broader range, wait and watch - Angel Broking

Nifty spot closed at 6211.15 this week, against a close of 6313.80 last week. The Put-Call Ratio has increased from 0.85 to 0.87 levels and the annualized Cost of Carry is positive 8.84%. The Open Interest of Nifty Futures decreased by 8.66%.

PCR-OI has increased from 0.85 to 0.87 levels. Last week we saw decent buildup in the range of 6200-6500 call options, wherein 6300 strike showed significant buildup. In put options the overall buildup was scattered but it was in range of 5700-6200 strikes, wherein 5700 strike added huge buildup last week. Highest buildup is seen in 6500 call & 6200 put options.

Implied Volatility (IV) for NIFTY has increased from 14.07%.to 14.80%. Historical volatility (HV) is at 19.03% and that for BANKNIFTY is trading at 31.42%. Liquid counters having very high HV are HDIL, CENTURYTEX, FRL, ORIENTBANK and IBREALEST. Stocks where HV are on lower side are DRREDDY, HINDUNILVR, IGL, INFY and ITC.

Nifty futures closed at a premium of 40.60 points against the premium of 58.25 points to its spot. Next month future is trading with premium of 83.75 points. Liquid counters where CoC is high are BHARATFORG, COLPAL, NHPC, GMRINFRA and IRB. Stocks with negative CoC are BHEL, IOC, SAIL and HDIL.

Total open interest of market has increased from Rs. 1,05,803/- cr. to Rs. 1,19,331/- cr. Stock futures open interest has increased from Rs. 34,436/- cr. to Rs. 35,418/- cr. Some of the large caps which added open interest are IDEA, TATAPOWER, NTPC, BPCL and M&M. Open interest was shed in large cap names like HDFC, POWERGRID, TATAMOTORS, IRB and HCLTECH.

Source : Equity Bulls

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