Ms.Sneha Seth (Derivative Analyst, Angel Broking): “Post some consolidation in the preceding weeks, the benchmark index unfolded today’s session on an extremely strong note, backed by Asian cues. During the day, Nifty extended the gains to conclude the session tad above 9650 mark. Majority of the heavy weight banking counter rallied in today’s session, which propelled the rate sensitive index registering a new high of 23806.65.
In Nifty options front, 9800 call options added some fresh positions, followed by huge amount of unwinding in 9600, 9650 and 97000 call options. On the flip side, 9600 and 9700 put options added good amount of build-up. Maximum concentration of open interest remains intact at 9700 call and 9500 put options.
As far as today’s FIIs activity is concerned, FIIs were net buyers in Index Futures to the tune of Rs. 145 crores with fall in open interest, suggesting covering of short position in today’s trading session. In Index Options they covered their shorts in call options and fresh writing was seen in index puts, which is certainly a positive sign for bullish participants. In addition, their previous longs formed in last couple of months are still intact in the system. Since, data is not indicating any major change; traders are advised to remain with the broader trend and any declines towards the support zone of 9500 - 9550 should be used to initiate fresh longs.”