FIIs refrained from rolling their short positions in January series - Angel Broking

Nifty spot closed at 8185.80 this week, against a close of 7985.75 last week. The Put-Call Ratio has increased from 0.92 to 1.05 levels and the annualized Cost of Carry is positive at 0.27%. The Open Interest of Nifty Futures decreased by 14.28%.

Derivatives View

Nifty current month future closed with a premium of 1.60 points against a premium of 42.20 points to its spot. Next month future is trading with a premium of 22.65 points.

PCR-OI has increased from 0.92 to 1.05 levels. In call option, 8000-8400 strikes were quite active from which 8100 and 8200 added huge positions. While in put options, we saw significant build-up in 7900-8200 strikes. Highest OI in current series is placed at 8200 call and 8000 put option.

Stock that added longs last week are GRASIM, M&MFIN, INDIACEM and ADANIENT. While, fresh shorts were visible in DIVISLAB, ENGINERSIN and GLENMARK. Liquid counters with higher CoC are BAJAJ-AUTO, ONGC, HDFC, SUNPHARMA and ICICIBANK. Stocks with negative CoC are IDEA, COALINDIA, GAIL, BPCL and HCLTECH.

In the mid of December series, we witness mixed activity by FIIs. However, majority of positions formed were on short side. In last 2-3 trading sessions of December series, we witnessed good amount of short covering bounce which lead expiry above 8100 mark. At present, most of the shorts are out of system. On Friday, we also saw fresh long addition in Index Futures and FIIs too actively participate in this move. Thus, looking at the above data we believe Nifty may continue to show strength. Traders are suggested to trade with a positive bias unless we see any relevant change in data.

Source : Equity Bulls

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