Informist, Friday, May 26, 2023
By Anshul Choudhary
MUMBAI – The Nifty 50 index rose nearly 180 points today on the back of buying from foreign investors, and ended just lower than 18500 points. This rise prompted several traders to buy call options of 18500-18600 strike prices, and write put contracts at 18300-18400 strike prices.
“FIIs (foreign institutional investors) are buying in cash market as well as creating long positions in index futures,” said Ruchit Jan, lead research analyst at 5paisa. “I expect Nifty 50 to reach 18700-18800 by end of next week.”
Jain said he is seeing a trend that FIIs are coming back to the market. “In April, FIIs covered their short positions and now in May, rollover of long positions was higher than that of short positions,” he said.
Today, the Nifty 50 closed 1% higher at 18499.35 points.
Owing to the gains in spot prices, traders bought call options of 18500-18600 strike prices. Premium at call options of 18500 strike price rose by 50.35 rupees to 87.50 rupees, those at 18550 strike price rose by 38.70 rupees to 63.50 rupees, and those at 18600 strike price rose by 27.50 rupees to 43.70 rupees.
On the put side, analysts said put writers were aggressive at 18400 strike price. Premium at put options of 18400 strike price fell by 73.55 rupees to 50 rupees, with addition of 7.7 mln contracts.
Nifty Bank also rose today, prompting traders to buy calls at 44000 strike price. Premium of call options at this strike price rose by 104.85 rupees to 268 rupees, with addition of 2.38 mln fresh contracts.
The June futures contract of the Nifty 50 closed at a premium of 70.85 points to the spot index today. Open interest in the contract rose 14.2% to 9.98 mln, as per provisional data.
–Nifty 50 Jun closed at 18570.20, up 149.95 points; 70.85-point premium to spot index
–Nifty 50 Jul closed at 18641.00, up 159.75 points; 141.65-point premium to spot index
–Nifty 50 Aug closed at 18722.70, up 46.40 points; 223.35-point premium to spot index
Today, Reliance Industries, HDFC Bank, Housing Development Finance Corp, Page Industries, Zee Entertainment Enterprises were among the more actively traded underlying stocks.
End
Edited by Tanima Banerjee
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
