BS RESEARCH: F&O Cues For Today

What is open interest?

Open interest position in futures and options indicate market-wide participation of derivative players. An increase in open interest with call-put ratio of less than one indicates oversold positions for the markets where as the call-put ratio above one indicates overbought position for the market.

What happened on Wednesday?

First, open interest of Nifty futures increased by 9.94 million in the last five trading days. The open interest position was built up with call-put ratio in Nifty futures at less than one throughout the five trading days.

This oversold position in Nifty created a panic in the market on Wednesday with the Sensex swinging 550 points in intra-day deals.

However, Nifty futures saw a lot of short-covering on Wednesday as the call-put ratio improved from 0.56 on Tuesday to 0.83 on Wednesday.
 

OPEN INTEREST                                                 (In million)
Company	08-Mar	07-Mar	06-Mar	03-Mar	02-Mar
Nifty	56.05	53.57	50.03	48.72	46.12
Tata Motors	7.68	6.31	6.39	6.05	5.12
Siemens	0.67	0.57	0.50	0.47	0.47
SBI	12.83	12.68	11.88	12.04	11.78
MUL	5.52	4.99	5.10	5.24	4.89
RIL	32.09	32.25	32.21	31.42	31.06