Informist, Wednesday, Aug 9, 2023
By Padmini Dhruvaraj
MUMBAI – Call writers ran to cover their short positions at 19500-19750 strike prices, expiring Thursday, as the Nifty 50 staged a recovery during the second half of the session and closed in the green.
The benchmark index slipped into losses during early trade, tracking weakness in global equity markets, as credit rating agency Moody’s downgraded ratings of several banks in the US and China’s July CPI reflected deflation in the country.
The 50-stock index recovered on the back of gains in shares of metals, automobiles, and oil and gas companies to eventually end 0.3% higher at 19632.55 points today.
“Markets staged a smart recovery in the late trading session after 2 days of weakness, as strength in European indices and sharp gains in metals, oil & gas, and auto stock aided sentiment,” said Shrikant Chouhan, head of research at Kotak Securities. “A promising reversal formation and a higher bottom formation on intraday charts is suggesting further uptrend from the current levels,” he added.
The change in market sentiment lifted the premiums of at-the-money call options, the 19600 strike, higher by 33.53% to 139 rupees. The strike had an open interest of 1.20 mln.
Meanwhile, some aggressive call options selling was also seen at the 19800, 20050, and 21500 strike prices. The 19800 strike had the highest net change in open interest with 2.23 mln new positions being added.
As call writers unwounded their positions, the put options premiums of all contracts at and below 19700 fell.
The 19500 put options contract had the highest net change in open interest of 5.06 mln, while its premiums fell 69.52% to 11.40 rupees. Additionally, some put selling was also seen at 19100, 19200, 19300, and 19450 strike prices.
“Bulls are trying hard to reclaim some strength, but it would be tough without the participation from the banking majors,” said Ajit Mishra, senior vice-president of technical research at Religare Broking. The Nifty Bank index ended 0.2% lower at 44880.70 points today. The option chain of the index showed indecisiveness among bulls and bears.
As a result, Chouhan said, “For traders, 19550 would be the trend decider level, above which the index could move up till 19700-19735. On the flip side, below 19550, the uptrend would be vulnerable and below the same, the market could slip till 19470-19440.”
The August futures contract of the Nifty 50 closed at a premium of 60.45 points to the spot index today. Open interest in the contract rose 0.88% to 11.19 mln, according to provisional data.
–Nifty 50 Aug closed at 19693.00, up 81.75 points; 60.45-point premium to spot index
–Nifty 50 Sep closed at 19802.55, up 79.80 points; 170.00-point premium to spot index
–Nifty 50 Oct closed at 19892.00, up 74.55 points; 259.45-point premium to spot index
Dr Reddy’s Laboratories, Reliance Industries, Adani Ports and Special Economic Zone, Infosys, Coal India, Trent, Tata Motors, Bharat Forge, Tata Consultancy Services, HDFC Bank, and Dixon Technologies, were among the most actively traded underlying stocks. End
Edited by Manisha Baxla
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Source: Cogencis
![[Geojit Comtrade] Daily report on Natural Rubber: December 4, 2012](https://img.globalrubbermarkets.com/2024/08/geojit-comtrade-daily-report-on-natural-rubber-december-4-2012.jpg?resize=120%2C86&ssl=1)
