Informist, Tuesday, Dec 28, 2021
By Vivek Kumar
MUMBAI – Nifty 50 may settle the December series closer to current levels with options data showing a concentration of open interest around 17200 and 17300 points, analysts said.
Today, the Nifty 50 closed 0.9% higher at 17233.25 points, after moving within a narrow range throughout the day. The open interest in its December futures contract rose marginally to 8.5 mln, as per provisional data.
In the index’s options, the premium of 17200 points call option rose by nearly 70% today, while those of 17200 put option fell by nearly 70%, indicating that the bias is likely going to be positive. The maximum addition of open interest on the call side today was seen at 17300 points and its premium rose by over 60%.
With the December series set to expire on Thursday, volatility will be high on Wednesday as investors will square off or rollover their positions to the January series.
Market participants expect the positive bias to continue going ahead as well. Nifty 50 may settle the December series slightly above current levels, said Raj Deepak Singh, derivatives head at ICICI Securities. The reduced selling by foreign investors and sharp bounce in global markets can be attributed to recent gains.
Among specific stocks, bullish bets were placed in Asian Paints, Sun Pharmaceutical Industries, Astral and Indian Railway Catering and Tourism Corp, while PVR and AU Small Finance Bank were among those that witnessed bearish bets.
–Nifty 50 Dec ended at 17252.45, up 149.05 points; 19.2-point premium to spot index
-–Nifty 50 Jan ended at 17300.00, up 149.00 points; 66.75-point premium to spot index
-–Nifty 50 Feb ended at 17360.00, up 147.10 points; 126.75-point premium to spot index
Total turnover in the futures and options segment of the National Stock Exchange was 52.8 trln rupees, compared to 54 trln rupees on Monday.
The turnover in index options was 49 trln rupees against 50.4 trln rupees the previous day. The total premium turnover of index and stock options was at 243 bln rupees, lower than 294.1 bln rupees on Monday.
Reliance Industries, ICICI Bank, Bharti Airtel, HDFC Bank, Infosys, Tata Motors, Tata Consultancy Services, Tata Steel, Tech Mahindra, State Bank of India, Bajaj Finance, Larsen & Toubro, ITC and Axis Bank were some of the most actively traded underlying stocks. End
Edited by Michael Correya
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Source: Cogencis
