Informist, Monday, Apr 3, 2023
By Anjana Therese Antony
MUMBAI – Aggressive writing in the options segment today indicates that the Nifty 50 may be range-bound in the coming sessions, analysts said. Heavy writing was seen in call strike prices near 17500 points and put writing at 17300 points, said Brijesh Ail, head of technical and derivatives at IDBI Capital. Analysts said call writers were taking active position ahead of two market holidays this week.
Today, the Nifty 50 closed 0.2% higher at 17398.05 points after swinging between gains and losses in the first half of the session. Gains in the index were led by shares of automobile and financial services companies. Immediate support for the Nifty 50 is at 17200 points and resistance at 17500 points. Analysts said the 17500-point strike would be a crucial point for the index, as the market may gain some momentum if it surpasses this level.
Traders sold call options near 17500-17700 points. The premiums at these levels fell 33-66% or to 25.8-2.2 rupees and open interest rose by 2-3 mln.
With banks reporting an on-the-year rise in deposits and advances for the financial year ended Mar 31, analysts remain optimistic on related stocks. “Nifty Bank has started picking up, and the trend is positive,” Ail said. Analysts said the market had factored in the likely outcome of the Reserve Bank of India’s monetary policy meeting this week. Put writing was observed at the 40500 strike price of the Nifty Bank and call writing at the 41500 strike.
Immediate support for the Nifty Bank is seen at 40500 points and resistance at 41000 points. Analysts said the index might go up to 41500 points if it surpasses 41000.
The April futures contract of the Nifty 50 closed at a premium of 76.90 points to the spot index today. Open interest in the contract was 1.3% higher at 11.57 mln, as per provisional data.
–Nifty 50 Apr closed at 17474.95, up 32.30 points; 76.90-point premium to spot index
–Nifty 50 May closed at 17549.95, up 52.30 points; 151.90-point premium to spot index
–Nifty 50 Jun closed at 17580.00, up 44.50 points; 181.95-point premium to spot index
HDFC Bank, Reliance Industries, Adani Enterprises, ICICI Bank, Maruti Suzuki India, Axis Bank, and State Bank of India were among the most actively traded underlying stocks. End
Edited by Avishek Dutta
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