In absolute terms, the open interest on which NIFTY (58.86%) is starting new series value wise has gone down to as low as late 2006 levels. In number of unit terms, it is comparable to open interest which prevailed in 2005. This is not good for depth of market as more players are shifting to options segment, which is good but not at the cost of futures.

On the other hand, BANKNIFTY (68.26%) rollover is in-line with the averages and index has added significant short positions from stronger hands of the market indicating negativity to continue in the same.

Put buying continues in June series as well, and interestingly, 4500 put has been the most active in terms of adding open interest. Call built-up indicates 5000-5100 levels may continue to act as strong resistance but there are participants who are bit more optimistic and hence substantial built-up is visible in 5300 strike of call.

Our take is, 4800 which was a strong support for May series may not hold in June, though we may not see a crash like situation but we may grind to lower levels irrespective of Greece political outcome on 17th June.


Source: Angel Broking