Published on 10/01/2019 10:05:24 AM | Source: Geojit Financial Services Ltd

F&O OUTLOOK - Cautiously bullish while above 10900 - Geojit Financial Services Ltd

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REVIEW: Nifty index futures closed 0.3% higher at 10877.7 on Wednesday. Meanwhile open interest declined by 2.31 lakh contracts indicating short covering and the premium slumped from 50.25 to 22.55 in the space of three days. A marginal rise in Nifty Put options' open interest by 0.4% and a slight decline in Call OI by 0.8% induced a hike in PCR OI from 1.41 to 1.43. India VIX closed lower at 15.27 against previous day's 15.7.


FII trade remained mixed

FIIs exhibited a mixed bias in the derivative segment on Wednesday. While their activity in index futures depicted a positive bias, activity in stock futures and index options portrayed a pessimistic outlook. In index futures they added longs by 6259 contracts and the net long exposure rose from 48% to 49%. However, activity in index options witnessed hefty addition of Put longs by 23179 contracts. Additionally there was activity also seen at Call longs and Put shorts where open interest rose by 8616 contracts and 6753 contracts respectively. Stock futures witnessed addition of fresh shorts by 8400 contracts.


OUTLOOK: Cautiously bullish while above 10900

Call longs added at the 11100 strike is an indication that the market has started to look beyond 11000 region. However, other OTM Call strikes haven't developed such strong activity which describes that certain amount of caution is still prevailing in the market. Activity in both Puts and Calls at 10900 suggests that this level will act as the pivot of the market.


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