1st June.

Options data 31st May:

5200CE: 51L OI up 10%

5100CE: 54L OI up 1% ==> Even when market is pushing higher not many want to write calls @5100. Definite bullish bias.

5100PE: 21L OI up 11%

5000CE: 31L OI down 1.2% ==> Again call writers are scared to write calls at 5000 too.

5000PE: 47L OI up 26%

4900PE: 51L OI up 13%

4800PE: 57L OI up 11%

Conclusion: Puts are being generously written and calls are being covered or reluctantly written @5000/5100. Definite bullish bias from options data.

FII dta:

Index Fut: 387Cr SELL

Index Options: 1294Cr BUY

Stock futures: 182Cr BUY ==> They have bought 1100Cr in 2 days and from last few days of May series their buy stands a net of a whopping 5500Cr in stock futures. If I have seen history of all month right this should imply 5400+ in June/July series. Somehow my heart doesn't want to believe but mind says u gotto believe data. The question is to drink the "bull syrup" or not in stock/index futures??

World Markets:

US was closed but S&P500 futures are down 0.7% to 1082. Europe was as flat as a football ground yesterday - clearly missing the big daddy (US markets) for direction. In another development German President has resigned - no clue what is the impact on world markets (if any).

Few interesting observations:

1. Turnover in FnO: Last 2 days has been low turnover in FnO - After hitting 1 Lakh-Crore consistently for 10-12 days in May the turnover has reduced to 65k Crores in first 2 days of this series. Low volume rise?? But FIIs are actively buying in Stock futures.

2. Futures Discount: Nifty futures is trading with a 25-30 point discount. Not sure what to make out of that? Over the long weekend in US, may be FIIs are on vacation and will back and will start the real trading today. Most of the time I have seen that the discount is resolved by an intraday fall of 70-80 points and a massive short covering in the afternoon. Will we get something like that today/tomorrow?