Informist, Monday, May 29, 2023
By Pradeep Suresh V
MUMBAI – The Nifty 50 index rose nearly 100 points today on the back of gains in shares of banking and fast moving consumer goods companies and settled a tad lower than 18600 points. This prompted several traders to buy call options with strike prices in 18600-18800 range, and write put contracts at 18300-18600 strike prices.
“Marginal institutions and proprietary buyers are getting involved in buying of calls and options,” said Mugilan K. of Cholamandalam Securities. “I expect Nifty 50 to reach close to 18900-mark by the end of this week.”
Today, the Nifty 50 closed 0.5% higher at 18598.65 points.
Owing to the gains in spot prices, traders bought call options of 18600-18800 strike prices. Premium at call options of 18600 strike price rose by 31.85 rupees to 76.20 rupees, those at 18700 strike price rose by 14.65 rupees to 32.20 rupees. Premiums of 18800 strike price rose by 4.65 rupees to 10.95 rupees today, as traders expect the uptrend in the market to continue with the Nifty 50 nearing its lifetime high.
On the put side, premium at put options of 18300 strike price fell 18.20 rupees to 11.90 rupees. However, open interest still remained high with 1.22 mln new positions.
Nifty Bank also rose today, prompting traders to buy calls at 44500 strike price. Premium of call options at this strike price rose by 49.90 rupees to 132 rupees, with addition of 2.6 mln fresh contracts.
The June futures contract of the Nifty 50 closed at a premium of 76.20 points to the spot index today. Open interest in the contract rose 1.2% to 9.7 mln, as per provisional data.
–Nifty 50 Jun closed at 18674.85, up 101.55 points; 76.20-point premium to spot index
–Nifty 50 Jul closed at 18747.50, up 107.35 points; 148.85-point premium to spot index
–Nifty 50 Aug closed at 18824.55, up 104.40 points; 225.9-point premium to spot index
Today, Reliance Industries, IndusInd Bank, ITC, Bharat Heavy Electricals, State Bank of India were among the more actively traded underlying stocks. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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
