Markets may see volatility today: An analysis

By Anuj Singhal, Head-Markets Research at CNBC-TV18

Market outlook

Volumes are likely to be muted today. Markets may see volatility in an intraday trade today. Singapore and HongKong desks closed for Chinese new year.

Yesterday's late sell-off sours sentiment again. Markets remain in sell on rally mode.

There was no major sell-off by FIIs yesterday. FIIs were net sellers of Rs 82 crore while DIIs were net buyers of Rs 680 crore in cash markets on Wednesday, as per provisional data available on NSE.

FIIs were net buyers of Rs 963 crore in Nifty Futures, which open interest (OI) was down by 27,960 contracts. They were net buyers of Rs 273 crore in Nifty Options, which OI was up by 47,531 contracts. FIIs were net buyers of Rs 575 crore in Stock Futures.

F&O cues

Nifty OI PCR was at 1.16 versus 1.15. Nifty Puts added 22 lakh shares in OI while calls added 17 lakh shares in OI. Nifty 5700 Call added 8 lakh shares in OI and Nifty 5500 Call added 6.5 lakh shares in Open Interest.

Total Nifty Futures' open interest was down by Rs 104 crore while options' open interest went up by Rs 2316 crore. Stock Futures shed 72 lakh shares in OI.

Nifty Futures OI shed 1.2 lakh shares in OI and Nifty Futures ended at 10 points premium versus 12 points. Highest OI outstanding was seen at 5400 Put, 5500 Put and 5700 call.

Nifty March 4800 Put added 4.2 lakh shares (81%) in Open Interest. Nifty 5600 Call added 3.5 lakh shares in OI. Nifty March 5300 Put added 3.2 lakh shares in OI.

Nifty 5200 Put added 2.6 lakh shares in OI. Nifty 5900 Call shed 4.2 lakh shares in OI. Nifty 5700 Put shed 2.55 lakh shares in OI.