PSU Banking counters attracting fresh longs ahead of RBI Monetary Policy: Angel Broking

Views of Ms. Sneha Seth (Equity Derivative Research Analyst, Angel Broking):

"Market opened with an upward gap, followed by some profit booking in the initial hours. However, market attracted decent buying interest near lows which led both Nifty and BankNifty once again to register a new record high. On derivatives front, we witnessed some short covering in Nifty, while BankNifty added fresh long positions in today's trading session. Heavy weight counters like MARUTI, RIL, LT, YESBANK, KOTAKBANK and AXISBANK contributed heavily in today's move. We observed many PSU banking counters adding good amount of fresh long positions just ahead of an important event (RBI Monitory Policy slated tomorrow); hinting the positive biasness in majority of the banking counters. As far as Nifty Options data is concerned, 9300-9600 call options remained active and we saw some fresh built up in it. While in put option, we witnessed good amount of open interest additions in 9000-9300 strike prices. Highest open interest in Nifty has shifted to 9500 from 9200 call options and of put options is still intact at 9000 strike. Thus, the overall data remains positive for us. Hence, traders are suggested to continue with their positive bias."

Source : Equity Bulls

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