Informist, Thursday, May 4, 2023
By Ananya Grover
MUMBAI – Traders bought call options of 18200 strike in the contracts expiring May 11 as the Nifty 50 crossed its crucial resistance at that level today. Analysts had said that the index will move towards fresh lifetime highs after breaching this level.
The Nifty 50 index hit a four-month-high of 18267.45 points today. Viraj Vyas, a technical and derivative analyst at Ashika Stock Broking said, “crossing 18200 points is a good sign for the market as the index is now set to make bigger moves.”
Vyas added, today’s gains were led by banking sector. “Nifty Bank is only 300-400 points away from its lifetime high,” he said.
On the call side, traders bought option contracts of 18200-18600 strikes. About 1.9-2.3 mln new positions of these contracts were added. Premium of 18400 strike jumped 100% to 16.25 rupees, that of 18500 strike jumped 72% at 14.45 rupees, and at 18600 level premium was 33% higher at 6.45 rupees.
However, aggressive selling was seen in the options of 18800-19000 points as market players do not expect the market to rise above these levels by the end of May 11.
On the put side, traders aggressively sold options of 17400-17700 strikes. Meanwhile, the 18200 strike contract had the maximum change in open interest of 4.66 mln and its premium declined 57%.
“Traders can look for fresh shorts only if Nifty 50 breaks the 18,000 level and remains below for 15 min to ensure short,” said Rohan Shah, the head technical analyst at Stoxbox.
In the contracts that expired today, open interest was highest at 10.12 mln on put option contracts of 18200 strikes followed by 18250 strikes as the spot market crossed these levels today. On the call side, the highest open interest in the contract expired today was at 18250 level, which closed at a premium of 5.55 rupees.
Analysts expect the Nifty 50 to move between 18200 and 18500 levels in Friday’s session. “As long as the index is trading above 18150, the uptrend wave is likely to continue up to 18350-18400,” said Shrikant Chouhan, head of equity research at Kotak Securities.
The May futures contract of the Nifty 50 closed at a premium of 57.45 points to the spot index today. Open interest in the contract was 2.7% higher at 9.84 mln, as per provisional data.
–Nifty 50 May closed at 18287.00, up 137.05 points; 31.20-point premium to spot index
–Nifty 50 Jun closed at 18350.00, up 136.35 points; 94.2-point premium to spot index
–Nifty 50 Jul closed at 18419, up 133.30 points; 163.2-point premium to spot index
HDFC Bank, Housing Development Finance Corp, Reliance Industries, and Bajaj Finance were among the most-actively traded underlying stocks today.
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Source: Cogencis
