Informist, Thursday, Nov 30, 2023
By Akshata Gorde
MUMBAI – There was buying across call options of the 20000-20700 strike prices of the Nifty 50’s derivative contract expiring on Dec 7 as the spot index managed to close higher after a volatile session today. The put side held 20000 as a key support for Nifty 50, followed by 19900 points in the near-term.
After a choppy session, the benchmark indices ended higher ahead of exit polls for recently held Assembly elections, India’s GDP data for Jul-Sep, and a virtual meeting of the Organization of the Petroleum Exporting Countries later in the day.
The Nifty 50 closed 0.2% higher at 20133.15 points as gains in Bharti Airtel and Larsen and Toubro more than offset losses in heavyweight stocks such as Reliance Industries and ICICI Bank.
The India VIX, popularly known as the “fear gauge”, rose to a high of 13.35 but eased towards the end to settle at 12.69 points. This indicates that “bulls are in no mood to relent, and Nifty (50) is perfectly set up to touch new highs,” said Sheersham Gupta, director and senior technical analyst at Rupeezy, in a note. “However, the exit polls are due in the evening, and their outcome may impact the market,” he said.
Echoing similar thoughts, Viraj Vyas, a technical and derivatives analyst at Ashika Stock Broking, said the strong listing of Tata Technologies will likely create a “psychological top”, pushing the indices higher.
Premiums on 20150-20700 call strikes rose in the range of 8-16%, while those on 19900-20000 put strikes fell by 8-9%. Meanwhile, selling was seen at 21000 and 20800 call strikes as the likelihood of such a rise in the Nifty 50 was dialled down after the profit booking today. The 21000 call strike had the highest open interest addition of 3.2 mln contracts, while the 19000 put strike had the highest open interest addition of 3.1 mln contracts.
Short covering was seen across in-the-money call options on account of Nifty 50’s November series expiry, said analysts.
According to provisional data, the December futures contract of the Nifty 50 closed at a premium of 135.95 points to the spot index, with the open interest rising 45.3% to 10.47 mln.
–Nifty 50 Dec closed at 20269.10, up 16.50 points; 135.95-point premium to spot index
–Nifty 50 Jan closed at 20395, up 26.25 points; 261.85-point premium to spot index
HDFC Bank, Tata Motors, ICICI Bank, Reliance Industries, State Bank of India, Axis Bank, Kotak Mahindra Bank, Bajaj Finance and ITC were among the more actively traded underlying stocks. End
Edited by Ashish Shirke
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