Informist, Thursday, Dec 16, 2021
By Vivek Kumar
MUMBAI – The out-of-the-money call option premiums of Infosys surged today as the stock was among the top gainers on the Nifty 50, with traders resorting to defensive buying.
Gains of over 2% in the stock today in the cash market, which helped it close at 1,771.60 rupees, led traders to place positive bets in its derivatives segment. Open interest in the stock’s December futures contract rose 3.7% to 33.1 mln, indicating addition of long positions.
The premium of the 1,780-rupee call option of the stock more than doubled today, while those of the 1,840 and 1,860 rupees call option strike prices jumped over 80% and 65%, respectively. Even deeper-out-of-the-money call option of 2,000 and 2,100 rupees witnessed some buying.
Among put options, the major strike price premiums tumbled 50-60%.
Similarly, bullish bets were also seen in other information technology companies amid strong growth prospects and strength in the US dollar over the last few sessions.
Supported by gains in the information technology companies and Reliance Industries, the Nifty 50 managed to eke out gains today and snapped a four-day losing streak.
Selling was seen across most major put and call options of the benchmark index today. The concentration of open interest was seen around 17300 points among both put and call options.
The Nifty 50 closed at 17248.40 points with 0.2% gains. The open interest in its December futures contract fell 5.3% to 11.3 mln, after rising sharply last two sessions. This indicated some covering of short positions.
-–Nifty 50 Dec ended at 17340.05, up 79.25 points; 91.60-point premium to spot index
-–Nifty 50 Jan ended at 17400.00, up 80.85 points; 151.60-point premium to spot index
-–Nifty 50 Feb ended at 17440.40, up 80.65 points; 192.00-point premium to spot index
The total turnover in the futures and options segment of the NSE was 150.0 trln rupees today, compared with 66.1 trln rupees on Wednesday.
The turnover in index options was higher at 147.6 trln rupees against 63.7 trln rupees the previous day as weekly options contracts expired today. The total premium turnover of index and stock options was at 310.3 bln rupees compared with 251.3 bln rupees on Wednesday.
Reliance Industries, Infosys, ICICI Bank, Bajaj Finance, Tata Power Co, HDFC Bank, Axis Bank, Tata Motors, Kotak Mahindra Bank, ITC Ltd, Zee Entertainment Enterprises, Tata Steel, Bharti Airtel and State Bank of India were some of the most actively traded underlying stocks. End
Edited by Avishek Dutta
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Source: Cogencis
