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India Equity Research Reports, IPO and Stock News
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After serious shorting in mainline index, participants have rolled over less of their positions. NIFTY
(64.30%) has witnessed low rollover and is also starting the December series on a relatively very lighter
note if compared to last month. But same cannot be said for BANKNIFTY (81.37%) which suggests that
huge short positions which got formed in last month’s fall have got aggressively rolled over to the next
month. However market-wide rollover has been very strong as most of the counters have witnessed very
strong rollovers. Same trend of less rolls in index and high rolls in stocks was visible in FII’s stats.
On options front, we are beginning PCR-OI at 1.28 levels which is higher than overall PCR-OI before
expiry because in December series 4500 and 4700 puts have seen significant rise in open interest and
looking at the way implied volatility has increased to 27.01%, we believe substantial portion of this
built-up is buying. In call options, tracing built-up above 5100 appears to be difficult, indicating upside
may be capped there.
Banking and Financials
In last expiry, SBIN (75.38%) has added huge
amount of short positions and rolled it too. For this
series counter will face strong resistance between
`1750-1800 zone. We suggest of selling this stock
in this zone.
Though rollovers are decent in percentage terms in
HDFCBANK (71.13%), its starting new series on
the lighter note and the correction in last expiry is
mainly due to unwinding of positions. `400-410 is
support zone for the stock. Buy if stock falls in this
range.
Many mid and small cap banks have added
substantial open interest in last series, viz.
ANDHRABANK (78.95%), BANKINDIA (76.17%),
DENABANK (88.21%) and BANKBARODA
(69.27%).
Metal & Mining
SAIL (86.87%) has entered into broader range of
`70-90 in which it consolidated in second half of
FY08-09. Counter in last series has been major
underperformer and has added huge amount of
short positions. Repeat of same consolidation is
quite likely.
STER (89.31%) has shown high rollovers while
there has been marginal addition of positions. We
don’t see much respite to the counter. Rallies
should be used to short the counter as we see
levels of `90 or below.
HINDALCO (83.69%) has corrected and positions
have unwound significantly. Counter is starting
series on the lighter note and has strong support in
the zone of `110-115. We don’t see major
downside in this name.
Auto & Auto Ancillaries
M&M (67.69%) right from beginning of November
series had witnessed substantial selling but barring
few days there has been not much of formation of
short positions. We don’t see significant downside
in the counter. First support for counter is at `690
and then around `650.
HEROMOTOCO and BAJAJAUTO have seen
conflicting trends. Former has added decent OI
while other has shed with fall in price. We are not
so bullish on HEROMOTOCO and best case
scenario for the counter can be consolidation in
`2000-2200 range. Avoid fresh longs.
Stocks like EXIDEIND (65.15%) and TVSMOTOR
(64.87%) have reduced substantial open interest in
series gone by.
FMCG
ITC (62.45%) has corrected from higher levels due
to long unwinding and has shown less rollover.
Counter is near its strong support of `188-190.
We suggest going long and trading with positive
bias in it.
MCLEODRUSS (97.02%) and RUCHISOYA
(96.10%) have witnessed highest rollover in this
sector. However former reduced OI while later
added substantial open interest.
MCDOWELL-N (85.86%) has seen significant
volume trades taking place in last few weeks. Stock
didn’t see much formation of short positions either.
`680 is decent support where one can accumulate
the counter.
Oil & Gas
We believe that OMC’s are going through worst
scenario of higher crude oil prices and rupee
depreciation and situation can’t get worst than this.
BPCL (57.75%), HINDPETRO (78.25%) and IOC
(70.21%) are starting series on the lighter note
compared to start of last series. We don’t expect
major breakdown in them.
RELIANCE (76.81%) has seen unwinding of
positions in last series. Counter may see some
formation of short positions which may take it to its
support level of `720. We don’t see downside
below support levels.
GAIL (56.63%) has seen least rollover in liquid
FNO names and has drastically reduced open
interest too. Keep eye on it.
Information Technology
Midcap names like EDUCOMP (73.01%), FSL
(86.03%), ROLTA (78.08%) and FINANTECH
(85.30%) have witnessed huge fall in prices but
formation of shorts series to series was not visible
in them.
After two series of solid performance INFY
(72.49%) has taken a breather but still has
outperformed market; however other large cap
peers have done better. Currency movements
should help company and sector in general. We
don’t see downside below `2500 in it.
For HCLTECH (81.48%), `360-380 is strong
support zone. Last two series when big names in
space have done well, this counter has been
volatile in the broader range. If counter corrects to
this zone, it’s a buying candidate.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
After serious shorting in mainline index, participants have rolled over less of their positions. NIFTY
(64.30%) has witnessed low rollover and is also starting the December series on a relatively very lighter
note if compared to last month. But same cannot be said for BANKNIFTY (81.37%) which suggests that
huge short positions which got formed in last month’s fall have got aggressively rolled over to the next
month. However market-wide rollover has been very strong as most of the counters have witnessed very
strong rollovers. Same trend of less rolls in index and high rolls in stocks was visible in FII’s stats.
On options front, we are beginning PCR-OI at 1.28 levels which is higher than overall PCR-OI before
expiry because in December series 4500 and 4700 puts have seen significant rise in open interest and
looking at the way implied volatility has increased to 27.01%, we believe substantial portion of this
built-up is buying. In call options, tracing built-up above 5100 appears to be difficult, indicating upside
may be capped there.
Banking and Financials
In last expiry, SBIN (75.38%) has added huge
amount of short positions and rolled it too. For this
series counter will face strong resistance between
`1750-1800 zone. We suggest of selling this stock
in this zone.
Though rollovers are decent in percentage terms in
HDFCBANK (71.13%), its starting new series on
the lighter note and the correction in last expiry is
mainly due to unwinding of positions. `400-410 is
support zone for the stock. Buy if stock falls in this
range.
Many mid and small cap banks have added
substantial open interest in last series, viz.
ANDHRABANK (78.95%), BANKINDIA (76.17%),
DENABANK (88.21%) and BANKBARODA
(69.27%).
Metal & Mining
SAIL (86.87%) has entered into broader range of
`70-90 in which it consolidated in second half of
FY08-09. Counter in last series has been major
underperformer and has added huge amount of
short positions. Repeat of same consolidation is
quite likely.
STER (89.31%) has shown high rollovers while
there has been marginal addition of positions. We
don’t see much respite to the counter. Rallies
should be used to short the counter as we see
levels of `90 or below.
HINDALCO (83.69%) has corrected and positions
have unwound significantly. Counter is starting
series on the lighter note and has strong support in
the zone of `110-115. We don’t see major
downside in this name.
Auto & Auto Ancillaries
M&M (67.69%) right from beginning of November
series had witnessed substantial selling but barring
few days there has been not much of formation of
short positions. We don’t see significant downside
in the counter. First support for counter is at `690
and then around `650.
HEROMOTOCO and BAJAJAUTO have seen
conflicting trends. Former has added decent OI
while other has shed with fall in price. We are not
so bullish on HEROMOTOCO and best case
scenario for the counter can be consolidation in
`2000-2200 range. Avoid fresh longs.
Stocks like EXIDEIND (65.15%) and TVSMOTOR
(64.87%) have reduced substantial open interest in
series gone by.
FMCG
ITC (62.45%) has corrected from higher levels due
to long unwinding and has shown less rollover.
Counter is near its strong support of `188-190.
We suggest going long and trading with positive
bias in it.
MCLEODRUSS (97.02%) and RUCHISOYA
(96.10%) have witnessed highest rollover in this
sector. However former reduced OI while later
added substantial open interest.
MCDOWELL-N (85.86%) has seen significant
volume trades taking place in last few weeks. Stock
didn’t see much formation of short positions either.
`680 is decent support where one can accumulate
the counter.
Oil & Gas
We believe that OMC’s are going through worst
scenario of higher crude oil prices and rupee
depreciation and situation can’t get worst than this.
BPCL (57.75%), HINDPETRO (78.25%) and IOC
(70.21%) are starting series on the lighter note
compared to start of last series. We don’t expect
major breakdown in them.
RELIANCE (76.81%) has seen unwinding of
positions in last series. Counter may see some
formation of short positions which may take it to its
support level of `720. We don’t see downside
below support levels.
GAIL (56.63%) has seen least rollover in liquid
FNO names and has drastically reduced open
interest too. Keep eye on it.
Information Technology
Midcap names like EDUCOMP (73.01%), FSL
(86.03%), ROLTA (78.08%) and FINANTECH
(85.30%) have witnessed huge fall in prices but
formation of shorts series to series was not visible
in them.
After two series of solid performance INFY
(72.49%) has taken a breather but still has
outperformed market; however other large cap
peers have done better. Currency movements
should help company and sector in general. We
don’t see downside below `2500 in it.
For HCLTECH (81.48%), `360-380 is strong
support zone. Last two series when big names in
space have done well, this counter has been
volatile in the broader range. If counter corrects to
this zone, it’s a buying candidate.
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