Informist, Wednesday, Nov 8, 2023
By Akshata Gorde
MUMBAI – The options chain indicates that the Nifty 50 index is likely to remain range-bound ahead of the expiry of the weekly contracts on Thursday, as selling was seen both on the call and put sides today. Call writing was seen in out-of-the-money call options at the 19500-19600 strike prices of the Nifty 50, while put writing was seen at 19300–19400 strikes.
The 50-stock index closed 0.2% higher at 19443.50 points after a choppy trading session in which it struggled for direction today. Analysts expect the index to find support at 19300 points and face resistance at 19550 points.
“After a promising uptrend rally, currently the market is consolidating at higher levels…indicating indecisiveness between the bulls and the bears,” Shrikant Chouhan, head of equity research at Kotak Securities Ltd, said in a note.
A number of analysts said the sentiment continues to be bullish, as investors believe in a long-term positive trend, though a slight correction cannot be ruled out. For the Nifty 50, 19400 points would act as a trend decider level, above which the market is likely to continue the positive momentum till 19500-19520 points, said Chouhan. Below 19400 points, selling pressure is likely to accelerate and could retest the levels of 19350-19315 points, he said.
Premium at the 19500 call strike was volatile throughout today’s trade, closing 30.8% higher from the previous day at 18.35 rupees,. It also had the highest open interest addition of 6.4 mln contracts today. Premium at the 19600 call strike fell 51% to 4 rupees.
On the put side, the 19400 strike price saw the highest open interest addition of 5.8 mln contracts, with its premium down 46% to 28.35 rupees. Premium at the 19300 strike fell 72% to 5.95 rupees.
–Nifty 50 Nov closed at 19488, up 11.1 points; 44.5-point premium to spot index
–Nifty 50 Dec closed at 19590.90, up 9.4 points; 147.4-point premium to spot index
–Nifty 50 Jan closed at 19700, up 17.5 points; 256.5-point premium to spot index
HDFC Bank, ICICI Bank, Bajaj Finance, Apollo Tyres, Hindustan Petroleum Corp, and Trent were among the most actively traded underlying stocks today. End
Edited by Avishek Dutta
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