Informist, Friday, Sep 29, 2023
By Padmini Dhruvaraj
MUMBAI – Investors covered some of their short positions between 19550-19750 strike prices of the call options as the Nifty 50 gained in the spot market.
The 50-stock index opened higher, tracking the positive sentiment in global markets, and ended the session 0.6% higher at 19638.30 points. “Positive global cues provided major impetus to local markets,” said Amol Athawale, vice-president of technical research at Kotak Securities.
“Buying in metals, oil & gas, and power stocks fuelled a major rally, but profit-taking in select frontlines saw indices end off their day’s highs,” he added.
The open interest of out-of-the-money call options 19700-19800 rose, indicating that market participants expect the bullish sentiment in the market to continue. The 19800 call strike had the highest net change in open interest, with 3.25 mln new positions being added.
However, the premiums of these contracts declined. “Though the pace of decline has softened, the tone is still negative and we don’t see that change until Nifty decisively reclaims 19750,” Ajit Mishra, senior vice-president of technical research at Religare Broking Ltd.
Additionally, some aggressive call options selling was seen at 20100, 20200, and 20250 strike prices.
After today’s session, analysts peg the 19600 level as the immediate support and the 19800 as the resistance. If the Nifty 50 passes its initial resistance, it can move up to 20200, they said.
On the put front, premiums across strike prices fell. The 19600 strike had the highest net change in open interest with 4.34 mln new positions. Meanwhile, some aggressive put options selling was seen at 19000, 19350, and 19400 strike prices.
The October futures contract of the Nifty 50 today closed at a premium of 75.70 points to the spot index. Open interest in the contract fell 0.25% to 9.67 mln, according to provisional data.
–Nifty 50 Oct closed at 19714.00, up 76.90 points; 75.70-point premium to spot index
–Nifty 50 Nov closed at 19837.10, up 75.65 points; 198.80-point premium to spot index
–Nifty 50 Dec closed at 19943.00, up 67.30 points; 304.70-point premium to spot index
Reliance Industries, Multi Commodity Exchange of India, NTPC, State Bank of India, HDFC Bank, Maruti Suzuki, Bajaj Finance, Glenmark Pharmaceuticals, and REC were among the most actively traded underlying stocks. End
Edited by Manisha Baxla
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