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IST
The rising open interest in the Nifty means there is definite support for the Nifty at 1900 levels. Tech counters do not look too good, while State Bank and Andhra Bank are counters to watch for.
The rising open interest in the Nifty means that there is definite support for the Nifty at 1900 levels. Tech counters do not look too good, while State Bank and Andhra Bank are counters to watch for.
Excerpts from CNBC-TV18’s exclusive interview with derivatives expert Ashwini Jawalkar of Prabhudas Lilladher:
On whether the continuously reducing difference between Nifty and Nifty Futures means a bounce back:
Yes. Even if you see the open interest today, it has gone up by around 7 lakh shares with the index moving up around a percent or higher, which means there is definitely support at 1900 levels.
On the OBC counter, given the beginnings of hedging on the Public Offer:
I think the options are pretty active, as in the 250, 270 calls are being bought. Basically, I see the price rebounding from here. Even the open interest had gone up by around 45%.
On the IT counters that showed positive open interest addition:
As of now, Infosys has added some open interest and apart from that, in Satyam and TCS, I have seen short coverings. Nothing great seems to have happened in technology.
On the kind of activity in the banking counters on the F& O side today:
Typically in State Bank, open interest moved up quite a lot, around 4 lakh shares, a similar story even in Andhra Bank. Those two stories look more positive.
On Maruti and whether one should be on the sell side:
Definitely on the sell side, because the open interest had gone up around 4 lakh shares and the prices were hammered. It is definitely on the short side.
Whether the recent action on the 1880 levels may bode the Nifty breaking the 1900 in the near term:
1880 puts were active. However, 1900 is definitely a good support. Basically one could think of carrying out a bearish trade, or covered puts.
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