Option data indicating optimism to continue: Angel Broking

Views of Mr. Jay Purohit (Technical and Derivative Analyst, Angel Broking):

"Post a corrective move seen in last couple of sessions, our market started today's session on a flat note and gradually moved higher as the day progressed. Eventually, the Nifty concluded the session with gains of 56 points with formation of fresh longs. Except, negative closing in Metal conglomerates, all other sectoral indices ended in the positive territory. The PSU Banking counters were on a roll throughout the session and added good amount of long positions. Despite market ending at the highest point of the day, FII's activity remained subdued in index future segment. However, their existing longs formed in last couple of months are still intact. On index options front, good amount of open interest reduction was seen in 9200 - 9500 call option. On the other hand, huge positions have been formed in 9200 and 9000 put options. Considering the options activity, we can easily assess that the market participants covered some of their short positions in index call options, which is certainly a positive sign for the index. Thus, we maintain our bullish stance on the market and expect continuation of the ongoing optimism."

Source : Equity Bulls

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