Nifty has resistance at 5690-5740: Aditya Birla Money

Aditya Birla Money has come out with its derivative report, 5700 PE saw unwinding of 2.8 lakh shares with total OI at 80 lakh shares (PCR‐OI of 5700 at 1.3) implying immediate short term Nifty will find resistance at 5690-5740 zone. 

Nifty PCR_OI correct further at 0.82 (new six month low), with 5600 and 5700 CE saw addition of 2.5 and 10 lakh shares total OI 16 and 63 lakh shares on other hand 5700 PE saw unwinding of 2.8 lakh shares with total OI at 80 lakh shares (PCR‐OI of 5700 at 1.3) implying immediate short term Nifty will find resistance at 5690-5740 zone.

India VIX corrected 6percent at 15.5, closing below 16 levels, we have to watch for next level 15.5‐17.5 if it moves back below 15 levels, Bulls will witness more technical rebound and Nifty may retest at 5730-5750 levels.

FIIs for 5th day continue selling in Nifty Fut. Rs 316 Cr. momentum increasing (fresh shorts seen, in last 4 days 2456 Cr. seen.); also for 5th day in a row Index Options selling 63 Cr (hedging stalled as VIX moving below 16 levels, implying FIIs expect volatility to correct a bit ), stock futures saw some buying 149 Cr; sellers in cash to the tune of 14 Cr. momentum on cash front losing, with hedging in Nifty reducing, also 4th day selling in Index Options expecting VIX to correct a bit, implying some support in Nifty can be seen 5630‐5650 levels.

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