December series concluded above 8100, expect optimism in the near term: Angel Broking

In last couple of days, we observed good amount of build-up in Index Futures, which was blend of both long and short positions. However, the quantum of shorts formed was comparatively more than the longs which were not so encouraging. On the Index Options front, we witnessed writing in 8050 - 8100 call options and good amount of profit booking in 7900 put strike; hinting towards a probable expiry between 8000 - 8050. However, the momentum was so strong; the Nifty even managed to surpass the higher end and eventually went on to conclude the December series tad above the 8100 mark.

As far as today's activity is concerned, first half was quite lackluster as the index oscillated within a narrow range of merely 40 points. However, the latter half attracted many active traders as we saw early signs of short covering that was formed in last few days. Rollovers percentage during the day jumped from 55% to 65% which is above its averages. Although, it's too early to take a call, we anticipate that the decent amount of short positions formed is probably out of the system and longs positions have been rolled over to the next (January) series. We may see continuation of today's move at least for next few trading sessions.

Source : Equity Bulls

Keywords