FIIs started their buying streak in equities; providing impetus for record highs: Angel Broking

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

"Wednesday's strong up move was followed by a gap up opening on the back of positive clues from global bourses. However, follow-up buying was missing and as a result, the Nifty shrugged off its opening gains to conclude the session marginally in the green. Today, FIIs formed mixed positions in index futures; wherein shorts are relatively higher than longs. However, they continued to buy in stock futures, index call options and went short on index puts. At the same time, FIIs started their buying streak in equity cash segment from last three sessions; wherein they were net buyers to the tune of Rs. 1307 crores in today's session, which is something to cheer for the Bulls. Among individual liquid counters, HEROMOTOCO, INFRATEL, UBL, SUNTV and TITAN added good amount of fresh longs; however, short build-up was observed in stocks like ARVIND, PFC, GAIL, ONGC and BALKRISIND.

As far as activity in index options is concerned, good amount of unwinding was seen in 9300 and 9400 call options for yet another day, followed by some build-up in 9550 and 9600 strikes. On the other hand, decent amount of fresh positions have been formed in 9400 and 9500 put options. The highest open interest remains intact at 9500 call and 9300 put options, which should be the trading range for forthcoming week. The PCR (OI) has also increased in last couple of sessions (from 1.14 to 1.26); but, that is mainly due to short covering in call option and fresh put writing, which certainly bodes well for the market. Thus, we advise traders to trade with positive bias and adopt stock centric approach."

Source : Equity Bulls

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