• Nifty (Jun) futures closed at a Premium of 4.30 points versus Premium of 1.60 points, while Bank Nifty June 2017 futures closed at 23240.00 on Wednesday at a premium of 5 points over spot closing of 23235.85
• Call writing was seen at 9600 strikes, put writing was seen at 9500 strike and put buying (unwinding by writers) was seen at 9400 strike.
• Maximum positions are at 9700 CE and 9500 PE. Nifty is likely to trade in the range of 9700-9500.
•PETRONET (41%), MRPL (21%), HDIL (19%), LT (17%) and KSCL (16%) were the top open interest gainers in the market.
• CADILAHC (-14%), NBCC (-13%), UNIONBANK (-13%), HEXAWARE (-13%) and ANDHRABANK (-12%) were the top open interest losers in the market
• The Nifty Put Call Ratio (PCR) finally stood at 0.84 for June month contract.
• Around 4.11 lakh shares were added in open interest with decrease in price indicating short buildup was observed by market participants in Wednesday’s trade.
• On the options front volatility index has decreased in Wednesday’s trade by around 4%.
Derivative Idea
HDIL added around 19% of open interest as Long positions. On Daily charts, HDIL formed a squat bar which indicates increase in volumes and upside move can be expected if close above yesterday’s high.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendations
Buy HDIL (July) Future above 89.55 Stop Loss 85.50 Target 94.00—96.00 (Lot Size 8000)
More will update soon!!
