Informist, Wednesday, Nov 24, 2021
By Joe Milton
MUMBAI – Amid selling pressure in bank stocks and Reliance Industries, the Nifty 50 index failed to sustain above 17500 points, which prompted option traders to add more bearish bets.
Expiry of Nifty 50 November derivatives on Thursday will be closely watched, because if the index slips below 17200 points, further slide towards 17000 points can be witnessed, said Ratnesh Goyal, senior technical and derivative analyst at Arihant Capital Markets.
Nifty 50 index fell sharply during the last hour of trade and briefly slipped below 17400 points. The sharp fall triggered unwinding of positions at both 17500 and 17400 put option strike price.
But, on the other hand, Nifty 50 option sellers placed their bets at 17500 call option strike price on expectation that the headline index would remain below this level.
Maximum addition of open interest in call option and put option side was at 17500 and 17100 strike price, respectively.
The 50-stock index touched an intraday high of 17600.60 points and a low of 17354 points, but managed to close slightly off lows at 17415.05 points, down 0.5%.
On sectoral front, covering of short positions led to gains in the Nifty Bank index as the open interest in November futures of the index surged over 11% to 1.6 mln.
However, selling pressure at higher levels pulled the Nifty Bank index from an intraday high of 37891.90 points, and it finally closed at 37441.95 points, up 0.5%. Call option writers added position across 37600-38000 strike price as the index failed to sustain its gain today.
On stock specific front, shares of Coal India gained 3.5% as its board plans to mull interim dividend on Monday. Coupled with this, covering of short positions too aided the stock to rise, as open interest in the November futures of Coal India jumped about 25% to 21 mln.
The stock has managed to gain, but it is not in an uptrend, and may face stiff resistance at 165-170 rupees level, Goyal said.
-–Nifty 50 Nov ended at 17367.50, down 127.75 points; 47.55-point discount to spot index
-–Nifty 50 Dec ended at 17402.85, down 137.70 points; 12.20-point discount to spot index
-–Nifty 50 Jan ended at 17468.00, down 140.60 points; 52.95-point premium to spot index
Total turnover in the futures and options segment of the NSE was 79.1 trln rupees today compared to 69.2 trln rupees on Tuesday.
The turnover in index options was 74.6 trln rupees compared to 64.1 trln rupees in the previous session. The total premium turnover of index and stock options was 271.8 bln rupees compared to 300 bln rupees on Tuesday.
Reliance Industries, ICICI Bank, Tata Motors, Bharti Airtel, Adani Enterprises, Tata Steel, HDFC Bank, Zee Entertainment Enterprises, Adani Ports and Special Economic Zone, and State Bank of India were some of the most actively traded underlying stoks. End
Edited by Maheswaran Parameswaran
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Source: Cogencis
