FIIs continue to add longs in June Series, says Angel Broking

Maximum concentration of open interest was seen in 9,700 call and 9,400 put option

In a volatile trading session, the benchmark index on Tuesday traded in a tight range of 9,580-9,635 throughout the day and eventually ended on a positive note with the gains of 19 points.  Both Nifty as well as Bank Nifty added some fresh open interest, indicating formation of long positions in today’s session. Some of the heavy-weights like Sun Pharma, GAIL, ACC, ICICI Bank and Hero MotoCorp added long positions, while ITC was the only stock that remained under pressure due to short formation.

In Nifty Options segment, 9,700 and 10,000 call options added some positions. On the other side, good amount of build-up was visible in 9,500 and 9,600 put options, while maximum concentration of open interest for current series was seen in 9,700 call and 9,400 put option.

FIIs activity in index remained muted in yesterday’s trading session. However, they formed good amount of long positions in stock futures. In May series, they formed mixed positions but rollover data hinted that they rolled all their longs in index futures and exited more than 55% of their short positions. Despite that, market has run-up sharply in the past few trading sessions. FIIs prefer holding their longs in index futures. Thus, we maintain our optimistic stance on market and expect Nifty to inch towards 9,700 mark.