FUTURES & OPTIONS

Settlement week witnessed brisk trading in the derivative segment.

Rollovers for Nifty were lower in terms of total percentage of open interest as well as the number of shares vis- a- vis last month and the last three month average.

On the options front, June series starts with the maximum open interest in put options at 10,600 strike and maximum open interest in call options at 11,000 strike.

The Implied Volatility of calls was at 11.42 per cent while that for put options closed at 11.05 per cent.

The Nifty VIX for the week closed at 13.22 per cent and is expected to remain sideways. Overall market’s cost- of- carry is up on the back of fresh long additions.

Data indicates heightened volatility in coming sessions with some stock specific moves. Auto stocks witnessed good buying interest. 2- wheeler stocks TVS Motors and Bajaj Auto look good for gains.

Bank Nifty futures ended the week 1.6 per cent higher. Crucial resistance on the upside is seen around the 27,150 levels, while important support is seen around 26,350 levels. Private Banks like HDFC Bank, Kotak Bank and YES Bank continued to attract good buying.

Contrarians advise accumulation of smaller PSBS for unexpected gains with 18 month horizon.

Resilient buying was seen in cement and metal counters. Stay invested for present. Stocks looking good are Cholamandalam Finance, Dabur, GAIL, RIL, Maruti and Ujjivan.

Reports indicate that Sebi decided to make physical settlement of stock derivatives mandatory in a phased manner, a move that could bring some much- needed balance between equity cash and derivative segments.