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Published on 15/05/2019 11:24:03 AM | Source: Geojit Financial Services Ltd

Nifty index futures closed 0.54% higher at 11241.65 on Tuesday - Geojit Financial

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Nifty index futures closed 0.54% higher at 11241.65 on Tuesday. Open interest declined by 7.7 lakh contracts indicating short covering while premium eased 31% in the space of two days and closed at 19.6. Revamped Put writing at OTM strikes and a decline in Call OI by 2.5% induced a rise in PCR OI from 1.18 to 1.28. India VIX closed marginally lower at 27.13 from 27.38.

 

 

FIIs persists with caution

Despite a bounce in the index FIIs continued on the cautious trail on Tuesday. Exposure in index future longs declined by 11521 contracts. Persistent erosion of OI from index future longs trimmed down the net long exposure from 71% to 56% in the space of 7 trading sessions. Activity in index options was focussed in addition of Call shorts where the open interest rose by 15418 contracts. Synthetic longs to synthetic shorts ratio in index options is at 44% which depicts the negative trading bias exhibited by the FIIs through the series. However, in stock futures they reduced shorts by 8935 contracts and added longs by 3644 contracts.

 

NIFTY OUTLOOK: Near term positive moves will depend on the ability to hold on to 11200/11000

Maximum Put-Call open interest is still held at 11000-12000 strikes, which has been the case for last two series. However, yesterday's Put writing at 11200 and Call long addition at the deep OTM strike of 12000 indicates a positive turn around in the near term perspective. Saying that, the continuation of similar activity is required to confirm the strength in reversal attempts.

 

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