By Manojh Vayalar
This January series started on a flat tone for both the Nifty and Bank Nifty. The positioning in the Nifty futures was at 1.05 crore vs 1.11 crore Open interest last month. Lower Open interest is implying a lack of clear trends in the index. Generally, a lower positioning brings in a range-bound movement. We expect Nifty to be in the 18000 – 18500 range for the first fortnight of the contract. FIIs started this series with around 56 % vs 77% Index longs last month, with some volatility in the Jan series they are down at 47% longs as of yesterday.
For the Bank Nifty
Sector-wise Metals, Pharma and Oil & GAS look positive however Infrastructure might witness pressure. RECL has seen a huge long buildup in the last 2months with participation going up from 4.8Cr to 7.1 Cr Open interest, presently with an 8% rise in price. We believe the stock can rally to 135 – 138 on this series with support near 114. Tata Steel
(Mr Manojh Vayalar is VP – Derivatives Research at Religare Broking Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)