Short HDFC Bank with target of Rs 480: Angel Broking
The Nifty futures open interest decreased by 5.06% while Minifty futures open interest is increased by 3.23% as market closed at 4924.25 levels. The Nifty June future closed at a discount of 2.65 point against a discount of 18.70 points. The July series closed at a premium of 13.05 points.
The Implied Volatility of at the money options is decreased from 22.75% to 22.60%. The PCR-OI has being increased from 1.07 to 1.09 levels. The total OI of the market is Rs 1,43,193 crore and the stock futures OI are Rs 28,257 crore.
Few of the liquid counters where we have seen high cost of carry are ABGSHIP, WELCORP, GUJFLOURO, BAJAJHIND and CHAMBLFERT.
FII’s were net sellers in cash market segment; they were net seller’s worth of Rs 666 crore on derivatives front they were net sellers in index futures while in index options they were net buyers.
On options front in June series we have seen good amount of buildup in 4,900-5,300 call option, while in put option 4,800 strike price have seen maximum buildup in yesterday’s trading session. In June series the maximum buildup in open interest is in 4500 put option and in call option the buildup is quite scattered however the maximum build is in 5,000 call option.
We have seen comparatively less rollover in the counter of HDFCBANK (58.84%) and is starting series on the lighter open interest. We feel majority of the long position which has being formed since the start of this expiry has not carried forward further. Rs 480 is a very strong support zone and we feel the stock could test this support. Hence we recommend to go short with the target price of Rs 480 and stop loss at Rs 518.
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