Derivatives Outlook - F&O Outlook - Geojit

The Nifty April futures closed at 9035.45 with a gain of 1.18% or 105.15 points on Thursday. Open interest of the current month expiry increased by 2.84 lakh shares indicating addition of long positions in the markets. Nifty's VIX slipped more than 7% to close at 46.0950 versus 497350 on Wednesday. On the options for April series, maximum Call OI is seen at 9000 strike whereas on the other side, maximum Put OI concentration was seen at 8500 strike. FIIs continued to be buyers for a fourth consecutive day in the F&O segment; bought derivatives worth Rs 1810.47cr on 16 Apr as per provisional figures. They stayed with increasing long positions in index futures by 7.33% while reducing exposure in short positions by 2.64%.

Nifty outlook

Systematic reduction negative bets albeit slowly, has accompanied larger increase along positive bets by FIIs in the index future segment, but that is not all. Nifty option spectrum now shows a hurried short covering from 9500, and equally strong long addition to 10,000 strike along calls, which shows a very strong bullish intent. But the large increase of shorts along 11000 suggests that the ongoing move is a very measured one. For now that is a reassuring stance, suggesting that bulls are not going overboard with the bullishness.This also needs to be read along with the large shorts built along the 6100 strike, which has been our downside target earlier.

Source : Equity Bulls

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