Indian Stock Market Future & Open Interest Movement Analysis by Nirmal Bang Securities
On Wednesday the market was volatile second day in a row with Nifty hovering between 4785 -4825 range and was not able to even cross yesterday's high of 4842 finally closing up 9 points at4814.25Nifty open interest increased to 298.19 lakhs, still being the highest OI seen in the last 30 days
(excluding on 27 august-(305.59lakhs) - last day of previous series) The OI increased by 2.96 lakhs .
Futures ended at 3.35 points premium compared to 3.2 points premium on the previous day, indicating a cautious sentiment in the market above 4800.
Put Call Ratio of OI for nifty further increased to 1.34 from 1.3 on the previous day. In the current settlement Put Call ratio is at highest level, and has increased for 5 days in a row.
OI remains high in Put options of 4400,4500,4600&4700. The 4600 Put OI being the highest at 70.04 lakhs. The 4700 put continued to add 8.58 lakhs shares. The 4800 put saw the highest addition of 9.49 lakh shares.
Between 4000-5300 calls, the open interest shed by 2.24 lakhs with 4900 call alone shed 5.05 lakh shares.
The high put call ratio of 1.34 along with huge build up on the put side of 28 lakhs share suggests the upside looks capped and investors are expecting market to fall.