Informist, Friday, May 19, 2023
Anshul Choudhary
MUMBAI – After the Nifty 50 index showed strength on a volatile day today, analysts believe the market has come out of correction phase, and it might rise to 18500 level in the coming days. Nifty 50 rose in the final hour of trading and that prompted traders to sell put options at 18000-18200 strike prices of Nifty 50.
“There was heavy writing on the put side, indicating bullish sentiments in the market,” said Rajesh Palviya, head of technical and derivatives research at Axis Securities.
On the put side, open interest at 18100 strike price rose by 2.6 mln to 7.05 mln, and at same time premium fell to 36.80 rupees. Further, open interest at 18000 strike price rose by 2.5 mln to nearly 8 mln and premium fell to 19.95 rupees.
Nifty 50 had fallen as low as 18060.40 points today, but it gained afterwards and closed 0.4% higher at 18203.40 points.
“There is a low chance that the market will again touch 18000 points after today,” said Ratnesh Goyal, senior technical and derivatives analyst. “I feel an upside will be seen from here, and we can see the market going to 18500 in the coming sessions.”
Goyal added that there was slight buying seen at call options of 18200 strike price after market showed strength. Premium at call options of 18200 strike prices rose by 9.7 rupees to 95 rupees. Premium at 18250 strike price also rose by 7.2 rupees to 69.80 rupees.
The May futures contract of the Nifty 50 closed at a premium of 27.60 points to the spot index today. Open interest in the contract rose 2% to 11.01 mln, as per provisional data.
–Nifty 50 May closed at 18231.00, up 55.55 points; 27.60-point premium to spot index
–Nifty 50 Jun closed at 18300.00, up 54.95 points; 96.60-point premium to spot index
–Nifty 50 Jul closed at 18375.00, up 55.20 points; 171.6-point premium to spot index
State Bank of India, HDFC Bank, Infosys, ICICI Bank, and Kotak Mahindra Bank were among the most actively traded underlying.
End
Edited by Manisha Baxla
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