Informist, Monday, Sep 25, 2023
By Padmini Dhruvaraj
MUMBAI – The options chain indicated indecisiveness among bulls and bears, with premiums across strikes of both call and put options falling, as the Nifty 50 ended unchanged from Friday’s session. The September contracts are set to expire on Thursday.
Markets had a muted start and ended flat today, taking a breather from the recent slide. The Nifty 50 rose 0.3 points to close at 19674.55 points.
After today’s session, analysts now see the immediate resistance level for the Nifty 50 at 19800, and 20000 if the index surpasses the initial resistance. The support for Nifty 50 is viewed at 19500 and 19000.
On similar lines, the open interest was highest at out-of-the-money call options of 19800 and 20000 strikes. Meanwhile, the open interest was highest at 19500 and 19000 strikes of put options as investors continued to hedge their positions. However, the fall in premium of at-the-money call and put options–19650–indicates choppiness in the market.
Meanwhile, the 19700 strike on the call options had the highest net change in open interest with 2.83 mln new positions being added. Some aggressive call selling was seen at 19900, 20000, and 20200 strike prices.
On the put front, the 19500 strike had the highest net change in open interest of 1.84 mln. The premium, however, fell 37.9% to 17.20 rupees. Aggressive put option selling was seen at 19050 and 19400 strike prices.
“On the weekly chart, the Nifty has formed a long bearish candle, indicating that the weak sentiment is likely to continue in the near future,” said Shrikant Chouhan, head of research at Kotak Securities.
On similar lines, Ajit Mishra, senior vice-president of technical research at Religare Broking Ltd, said: “It is a normal pause (today) and we may see some rebound too due to oversold positions. However, the upside seems capped citing a strong hurdle around the 19800-19900 zone.”
The September futures contract of the Nifty 50 today closed at a premium of 30.20 points to the spot index. Open interest in the contract rose 1.04% to 8.74 mln, according to provisional data.
–Nifty 50 Sep closed at 19704.75, down 3.50 points; 30.20-point premium to spot index
–Nifty 50 Oct closed at 19823.00, up 0.35 points; 148.45-point premium to spot index
–Nifty 50 Nov closed at 19940.90, down 7.75 points; 266.35-point premium to spot index
Bajaj Finance, Maruti Suzuki, Reliance Industries, HDFC Bank, State Bank of India, ICICI Bank, Tata Motors, Axis Bank, Kotak Mahindra Bank, and Infosys were among the most-actively traded underlying stocks. End
Edited by Manisha Baxla
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