RESEARCH ALERTS: MTNL may log gains

What is Open Interest?

Open Interest (OI) 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 Monday?

Nifty March & April futures were traded at a premium towards the end of the session yesterday.

The put-call ratio (PCR) of Nifty has eased marginally to 2 from 2.04 over the weekend. While call options added over 4.7 lakh (+4.9%), put options added nearly 5.6 Lakh shares (+2.8%).

The PCR of MTNL has declined as call options added nearly 3.6 lakh in OI, and we may see further upside in the stock.

Impressive rollovers were seen in Jindal Stainless (56%), Matrix Labs (53%), Hindalco (47%), Chambal Fertilisers (41%), HDFC Bank (40%) & Gujrat Ambuja (40%). Nifty rollovers have also been near to 30%.

Long OI was built in UTI Bank (20%), Aurobindo Pharma (14%), GAIL (14%), IVRCL (12%), Tata Motors (12%), Suzlon (11%) and IDBI (10%). We may see further upside moves in these stocks.
 

OPEN INTEREST                                                             (In million)
Underlying	27-Mar	24-Mar	23-Mar	22-Mar	21-Mar	20-Mar
Nifty	66.78	66.53	65.28	64.28	63.07	61.51
IVRCL Infras	3.05	2.68	2.67	2.59	2.68	2.68
Tata Steel	20.74	21.49	22.00	20.90	20.32	19.66
SBI	14.27	14.36	14.65	14.48	14.11	13.51
ACC	7.60	6.97	7.39	7.42	6.97	6.59
RIL	21.89	22.38	22.44	23.33	23.46	23.90
VSNL	9.78	9.11	9.75	9.80	9.68	9.76
Total	1242.98	1212.89	1195.08	1198.79	1185.35	1183.87