F&O tracker: FIIs turn net sellers in index futures, book profit

By Ashish Chaturmohta, Intime Equities

The RBI in its bi-monthly policy kept repo rate and cash reserve ratio unchanged but cut statutory liquidity ratio by 50 bps to 21.5 per cent. RBI said more data is awaited for further action on the rates front.

The Nifty Future closed in the red for the third consecutive day at 8809.90 levels after a volatile session of trade. Nifty Future open interest increased by 1.83 per cent from 2.56 crore to 2.61 crore indicating short built-up.

FIIs were net sellers in index futures worth Rs 474 crore with decrease in open interest by 0.48 per cent; it was profit booking and some fresh short build-up.

But FIIs continue to hold huge amount of long positions in index futures suggesting they expect market to rally.
Arvind and Tata Motors are looking strong and can rally towards 320 and 650 levels, respectively. In the banking space Allahabad Bank and Bank of India are looking weak and are seen to have a short build-up.

They can decline towards 102 and 243 levels, respectively.

In the capital goods space L&T and Bhel are looking strong and can rally another 5-6% from current levels.

On the options front, the put call ratio open interest (PCR OI) of Nifty decreased to 0.85 levels on Monday from 0.87 levels as calls continue to see addition. The maximum open interest concentration for the put options has shifted lower to 8500 strike price with a base of 25 lakh.