Auto conglomerates attracting fresh longs in June series: Angel Broking

Ms.Sneha Seth (Derivative Analyst, Angel Broking): “The benchmark index recouped Tuesday’s loss as it opened with an upside gap on back of positive global clues. Post some consolidated during the day, fresh buying interest emerged once RBI Policy was announced, which resulted Nifty closing at 9663.90. On derivatives front, Nifty futures open interest increased by 2.03%; while, BankNifty futures open interest activity remained muted in today’s trading session. Nifty50 constituents like M&M, MARUTI and HEROMOTOCO added fresh long positions. On the flip side, shorting was seen in TCS, WIPRO, BPCL and TECHM.

Now, if we look at Nifty’s options activity, we hardly saw any meaningful activity in call option. However, we witnessed highest open interest addition in 9600 put options followed by some build-up in 9400 and 9700 puts. Maximum open interest concentration in June series is now placed at 9700 call and 9500 put option.

Nifty June future closed with a premium of 16 points against the discount of 0.90 points on last week (Friday), suggesting some buying interest emerging in the benchmark index this week. In today session, FIIs activity remained subdued in F&O space. However, longs formed in Index Futures since last series are still in system. Considering above data points, we don’t see any signs of reversal yet. Thus, we would suggest traders to focus on individual stocks with a positive bias in order to fetch higher returns.”