India Research
In terms of
percentage, Nifty (64.37%) rollover may just appear to be in line with recent
averages, but in terms of number of unit wise, this is lowest open interest
since early 2005!! Even if we just compare with last month then Nifty has
reduced substantial open interest. This highlights that despite market making
new highs in last week; the leverage in main instrument of market has been
reducing, indicating that this market is not in any overbought zone. On the
other hand, BANKNIFTY (66.94%) has added some positions compared to last month,
which we believe are more of long positions. The process of change in hands in
equity continues as stronger hands (FII’s) are in accumulate phase while DII’s
are seeing redemption pressure; so don’t expect crash like situation in market.
Liquidity tap may continue as most of the indicators like bond yields,
crude oil, etc are pointing towards further inflow coming. For first half of
Feb series we have bullish stance on the market and we may see breach of new
resistance of 6100 and post that market reaching to higher levels of 6200-6250.
However we recommend buying on dips as implied volatility of calls is higher
than that of put options of Nifty. Source: Angel
Broking
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