Long RPower with stop loss at Rs 92: Angel Broking
The Nifty futures open interest increased by 0.45% while BankNifty futures open interest is increased by 0.61% as market closed at 6009.50 levels. The Nifty Jan. future closed at premium of 30.05 point against a premium of 42.40 points. The Feb. series closed at a premium of 68.65 points.
The Implied Volatility of at the money options is decreased from 12.45% to 12.06%. Nifty PCR-OI has increased from 0.99 to 1.00 levels. The total OI of the market is Rs 1,30,292 crore and the stock futures OI are Rs 37,394 crore Few of the liquid counters where we have seen high cost of carry are ASHOKLEY, IVRCLINFRA, RENUKA, GVKPIL and UNIPHOS.
Significant amount of buying was observed by FII’s in cash market segment; they were net buyers worth of Rs 1,397 crore On derivatives front they formed long buildup in all the three main segments of index futures, index option and stock futures in yesterday’s trade.
On options front 5900-6000 put option has seen good amount of buildup in open interest, while in call option 6200 strike price saw maximum buildup in open interest in yesterday’s trading session.
The counter of RPOWER is very much heavy in terms of open interest indicating lot of short positions standing in this stock. However in last 2-3 trading session the stock has seen some signs of long buildup and hence we feel the counter could see
some short covering bounce from current level which could take the stock to around Rs 105. Go long with the stop loss of Rs 92.