The markets retraced all their losses with the BSE Sensex closing at a new all-time high of 19,243.17 and the S&P CNX Nifty closing at 5,702. The Nifty is still 47 points away from its intra-day all-time high of 5,749. |
The trend remains positive as long as the Nifty holds 5,500 levels. After Friday's consolidation, the Sensex is heading towards 20,000 and Nifty will settle close to 6,000. |
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The uptrend is intact for Monday and consolidation is likely to take place around 5,500 and 5,700. The Nifty PCR rose to 1.16 from 1.15 as put options added OI of 12.68 lakh shares and call options added 9.89 lakh shares in open interest. |
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It has been hovering around 1.15-1.20 since the last fifteen days, indicating that option writers were not willing to bet on volatile markets. |
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However, call writing was seen at 5,800 and 5,900 levels with premium ranging between Rs 150 and Rs 200. The call option writers expect the Nifty to move up by around five to six per cent from the current 5,702. |
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Institutional buying was seen in 5,600 and 5,700 call options. The sellers were seeking a premium of Rs 350 for 5,600 call and Rs 250 for 5,700 call option. |
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The premium of three to six per cent for in-the-money and out-of-the-money call options suggest that the Nifty could touch 6,000. |
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Among the stock futures, Reliance Industries, Reliance Communications and Sail witnessed fresh long positions as the open interest in these stocks increased, accompanied with a positive cost of carry. L&T and Reliance Petroleum witnessed short covering as OI declined, with a sharp increase in the prices of November futures. |
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