Informist, Tuesday, Nov 7, 2023
By Maitri Seth
MUMBAI – Heavy selling was seen across call options of 19450-19500 strike prices of the Nifty 50 index as traders expected that the 50-stock index might move below these levels in the remaining session.
The highest change in open interest was seen at call options of 19450 strike prices, premium on which fell 23.6% to 43.65 rupees. Writing was also seen among call bets of 19400 and 19500 strike prices, with their premiums slipping 19-28% from Monday.
Meanwhile, among put options, premiums on 19250 levels remained volatile, 7.1% lower at 12.75 rupees by closing. High open interest was also seen at put option of 19400 strike prices.
Analysts anticipated that the benchmark index will move in a range of 19300-19500 points in the next two sessions. Today, although the Nifty 50 index fell up to 19329.10 points, it soon recovered from most of its losses, and closed flat at 19406.70 points. Although market participants are of the view that there is no major downward trend seen in the Nifty 50, they are still in a wait-and-watch mode, considering that the current bullishness is not substantial.
“Technically, the confirmation of strength for Nifty (50) can be seen only above its biggest hurdles at 19707 mark, while support is placed at 19225 mark,” said Prashanth Tapse, senior vice-president at Mehta Equities.
Slight bullishness in the market was also indicated by foreign institutional investors. Ruchit Jain, lead research analyst at 5paisa, said that long positions from FIIs have improved to 20% so far in the current week from 12% during last week, as FIIs have covered their short positions. “Slow and gradual short-covering is expected further,” Ruchit added.
Among sectors and specific stocks, select pharmaceutical companies are expected to perform well, as they have lately had a gradual recovery in the market. Significant stock-specific gains can also be seen in the mid- and small-cap sectors.
The November futures contract of the Nifty 50 closed at a premium of 73.35 points to the spot index today. Open interest in the contract rose 0.4% to 11.13 mln, according to provisional data.
–Nifty 50 Nov closed at 19480.05, down 6.45 points; 73.35-point premium to spot index
–Nifty 50 Dec closed at 19584, down 5.55 points; 177.30-point premium to spot index
–Nifty 50 Jan closed at 19682.85, down 6.70 points; 276.15-point premium to spot index
Bajaj Finance, HDFC Bank, ICICI Bank, State Bank of India, and Trent were among the most actively traded underlying stocks today. End
Edited by Manisha Baxla
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