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Published on 8/11/2019 10:19:35 AM | Source: Geojit Financial Services Ltd

The highest call OI accumulation is seen at 12500 - Geojit Financial

F&O OUTLOOK

Review

Nifty futures closed higher by 0.33% at 12047.95 on Thursday. Open interest increased by 4.42 lakh shares indicating long positions build up in the markets. Premium declined to 35.9 points from the last day's 42 points. Nifty Put-Call ratio marginally rose to 1.48 from Wednesday's 1.44 led by the addition of put options in the ATM and OTM strikes. Nifty volatility index, VIX slumped by more than 3% to close at 15.2075 from the last day's 15.775.

 

FIIs accumulated longs in the index futures for fifth day

FIIs were buyers in the equity market segment, while continuing to add to index future longs. Though index future longs attracted the largest OI increase yesterday, there is still 1.17 index future shorts for every index future long. Also along long option side, there are 1.26 put longs for every call long. However, options bets in the options are tilted towards upsides with 1.87 put shorts seen for every call short.

 

Nifty Outlook: Upmoves restricted

Following 7Nov weekly’s expiry, the 14No contract has seen call writing all the OTM strikes indicating limited upside expectations for now. However, the activity around monthly contract continues to remain positive, with call addition seen in the near OTMs as well as short build up in puts. The highest call OI accumulation is seen at 12500, while significant churn and build up is seen along 12300-12400 strikes. On other hand puts are quite active as far as 11500, suggesting that volatility expectation is rising.

 

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