Nifty Set for a Rebound, Bharat Forge, Bata India to be Under Pressure

The Nifty is set for a rebound on Thursday after closing lower for six straight sessions.

Open interest or outstanding positions in the December Nifty future increased by 3.6 lakh shares while the premium increased to 31.85 points from 26.9 points earlier, indicating a rise in bullish bets.

Similarly open interest in 7,600 and 7,500 strike puts have increased by 4.8 lakh shares and 8.8 lakh shares respectively, suggesting that these levels are unlikely to be taken out in near future. Open interest in the 7,500 strike put was the maximum at 64.5 lakh shares.

Overall, puts have added 31.3 lakh shares to open interest while open interest in calls have increased by 42.2 lakh share keeping the put-call-ratio(PCR) unchanged at 0.78.
A PCR of 0.78 suggests that overall sentiment for the market will continue to be negative.

The India VIX or the volatility index closed 4.71 per cent higher at 16.72 on Wednesday suggesting increased volatility in coming days.

Among individual stocks Bharat Forge, Bata India, Mcleod Russel India saw addition of bearish bets while Strides Arcolab saw addition of bullish bets.