F&O WATCH: Ashok Leyland, HLL, ITC in bullish mode

What happened on Monday?

Major covering of short positions toward the end of the session triggered a major recovery on Monday with the Nifty April futures closing at a premium of 10 points as against a discount of 8-10 points in early trades.

The Nifty April futures closed at 3488.55 when compared with the spot Nifty of 3478.45, but the OI was down marginally by 6.43 lakh shares to 27.6 million shares.

The put-call ratio (PCR) of Nifty moved down marginally to 1.49 as against 1.55 on Friday as call options added nearly 4.2 lakh shares (+6.6%) whereas put options added only 2.4 lakh shares (+2.5%). 
 

OPEN INTEREST                                                       (In million)
Underlying	10-Apr	7-Apr	5-Apr	4-Apr	3-Apr	31-Mar
Nifty	46.38	45.19	43.22	41.71	39.01	38.14
Satyam Computer	11.78	9.76	4.65	3.48	3.40	3.29
Tata Steel	17.40	16.41	16.01	16.11	15.27	14.38
ACC	7.10	6.33	5.22	4.87	4.82	4.69
MTNL	38.17	37.08	37.04	35.71	34.28	33.62
SBI	11.97	10.40	10.08	10.34	9.44	9.22
IVRCL Infras	16.43	15.06	14.88	15.24	15.45	15.01
Total	1173.01	1132.47	1111.24	1068.78	1016.25	985.21

The call options of Ashok Leyland added nearly 6.5 lakh shares in OI, the call options of HLL moved up by nearly 2 lakh shares, and call options of ITC increased by nearly 3 lakh shares, which supports the bullish view on these stocks.  NTPC call options also added over 4.4 lakh shares in OI.

The major gainers on Monday were Jindal Stainless, IFCI, MTNL, Tata Steel, India Cements, Jindal Steel, IVRCL and Hindalco. Jindal Steel was up 14.34% with OI moving up by 15.3 lakh shares in the April futures. MTNL gained 7.56% with OI up by 8.67 lakh shares, and Tata Steel gained 7.08% with 6.02 lakh shares added in OI.

Long OI build up was seen in ITC (12%), HLL (11%), Colgate (11%), Satyam (16%), TCS (16%), HCL Tech (22%), ACC (13%), Ashok Leyland (11%), Cipla (13%), Hindalco (14%) and Suzlon (12%).