FIIs net sold stocks worth Rs 10,712 crore in the cash market, and index futures worth Rs 10,336 crore in the derivatives segment in the three trading sessions post Budget 2024.
F&O trading strategy: A high OI-based PCR suggests that traders were expecting limited downside at these counters, and were comfortable writing Puts.
All you need to know before the Indian stock market opens for trade on Thursday: The FIIs long-short ratio in index futures rose to 5:1; meaning more than 5 long positions for every short trade.
Market regulator Sebi tweaked the selection criteria for stocks to join and exit the derivatives (F&O) segment on Thursday, June 27
In the derivatives segment, stocks such as India Cement, GMR Infra, Chambal Fertilizers seem to have witnessed long unwinding in recent trading sessions owing to the sharp rally in share prices.
FIIs index futures long-short ratio plummeted to 0.15 on May 03, as against 0.98 a day earlier in the F&O segment. In cash market, net monthly sales rose to Rs 43,800 cr, the highest since June 2022.
Retail index long positions as on May 27, 2024 - five days ahead of vote counting - stood at 3.13 lakh contacts, as compared to 1.92 lakh contracts and 1.99 lakh contracts during such earlier periods
Analysts attribute this rise to nervousness ahead of the outcome of Lok Sabha elections on June 4, and expect India VIX to continue its journey north as the election outcome day nears.
Nandish Shah of HDFC Securities recommends to Buy Vedanta 280 CALL and simultaneously sell 290 CALL of the January series.
Long build up is seen in the VOLTAS Futures on Thursday where Open Interest rose by 7% (Prov)
Nandish Shah, Sr. derivatives & technical research analyst, recommends to Buy LARSEN 2300 Call option and simultaneously Sell 2400 Call of the May series.
The PCR for Nifty and Bank Nifty for the April series is above 1, suggesting presence of strong Put writes for both derivatives.
The derivative analyst from HDFC Securities recommends to Buy PowerGrid 222.50 Call and simultaneously Sell 230 Call for the March expiry.
The derivatives analyst from HDFC Securities suggests to BUY 1,150 Call for February 23 expiry of HCL Technologies, and simultaneously SELL 1,200 Call of the same series
Adani Enterprises, Adani Ports, ACC and Ambuja Cements witnessed significant build-up of OI in tandem with a fall in stock price so far this week, indicating build-up of shorts at these counters.
However, the overall market wide position dipped below Rs 2.20 lakh crore for the first time in the last six months.
The derivative analyst from HDFC Securities recommends buying HCL Technologies 1020 Call and selling 1040 Call of the October series.
The technical analyst from HDFC Securities recommends buying Canara Bank 240 Call and simultaneously selling 250 Call for the September series.
The technical analyst from HDFC Securities recommends buying L&T 1900 Call and simultaneously selling 1920 Call for the August series.
The technical analyst from HDFC Securities recommends buying Indian Hotel June future for a target of Rs 232.