Report ----- for Monday 3rd

Comments

• Open interest in Nifty futures has fallen by 22.97% whereas the Nifty price has increased by 2.27% from 5634.60 to 5762.75. This is due to the expiry of November series.
• The Nifty PCR-OI has risen from 1.10 levels to 1.34 levels.
• The current premium in Nifty is 40.75 points and the CoC is currently positive 9.56%.
• Nifty Futures annual volatility has risen from 38.51% to 39.81%.
• Stocks currently trading at a significant premium in December series are J&KBANK, TATATEA, BHUSANSTL, KTKBANK and SASKEN.

View

• The phenomenal rise in PCR-OI is due to significant addition of contracts in most strike price Put options. Since the November series contracts have just expired this rise in the PCR-OI should be given limited importance and a view based on it should be formed only after a few trading sessions. The maximum addition of OI was seen in the 5800 strike price Call & Put option. The options build-up at this level indicates that Nifty may breach this resistance in the coming sessions. Moreover, the 5700 may act as a good support on closing basis for the time being.
• We can see unwinding of positions in most counters however that is due to the expiry of the November series contracts and not due to the ambiguity amongst participants.
• ASHOKLEY and IDFC though having shown shortcovering in last trading session have added noteworthy long positions in previous series and have also witnessed healthy rollover. These stocks may continue to trade with a positive bias.

Dealers Diary

Friday’s trading session ended the day on an extremely strong note taking positive cues from the Asian markets. Market breadth was strong. All sectoral indices ended in positive territory with the Metal, Power, Realty and IT counters trading very strong. The Mid-cap index outperformed the benchmark indices. The GDP growth for the second quarter of this financial year slowed to 8.9% (10.2%) due to a slowdown in manufacturing. The Inflation rate rose on the back of higher vegetable prices to 3.21% for the week ended November 17 as against 3.01% in the previous week. Among the frontliners, Satyam Computers, HDFC, TCS, Reliance Energy and DLF gained 3-7%, while BHEL, Bajaj Auto, Ambuja Cement and HUL lost 0.3-1%. In the Mid-cap segment, Rashtriya Chemicals, Wire & Wireless, Phoenix Mills, ABG Shipyard and Hotel Leela gained 10-12%, whereas Info Edge, Redington, Atlas Copco, Orchid Chemicals and IL&FS Investsmart lost ground by 3-6%.

Markets Today

The trend deciding level for the day is 5726/19265. If the NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally upto 5819-5877/16523-19683. However, if NIFTY trades below 5726/19265 for the first half-an-hour of trade then it may correct upto 5669/19105.

----- With due apologies and full credits to Angel Broking Limited