The Hindu Business Line : Options turn active as Nifty remains volatile

Chennai, June 3 Trading volumes picked up sharply on a volatile day in the F&O segment on Tuesday to Rs 40,448.71 crore against Monday’s figure of Rs 35,257 crore. Nifty June future closed at 4707.10 against the spot close of 4715.9.

Open interest improved 5.4 per cent or 19.15 lakh shares. Short-covering in index futures has lifted the market in the second half of trading.

Interestingly, options turned active. While 4700 put was the most active, the other active counters include Nifty 4800 put, Nifty 4500 put and Nifty 4700 and 4900 calls.

Among them, Nifty 4500 put added about 8.16 lakh shares in open interest positions while 4700 call accumulation of 2.78 lakh shares. On the other hand, Nifty 4900 call 2.29 lakh shares in open interest.

This indicates a strong resistance for the Nifty at 4900, thanks to the emergence of call writers. The accumulation in 4500 put indicates that the Nifty is heading towards that level. NSE’s volatility index fell marginally to 28.49 against Monday’s value of 29.49, which bodes well for the market.

Stock futures

Among the stock futures, Reliance Industries was the most active followed by Reliance Petroleum, Essar Oil, DLF and Infosys Technologies.

Contracts on Unitech, Cairn India, Essar Oil and Reliance Capital added open interest positions, while Reliance Industries shed about 5 per cent in open interest positions.

Essar Oil counter maintained momentum to finish with a gain of 5.93 per cent at 250.15 against the spot close of Rs 249.20.

Contracts on DLF, Infosys Technologies, L&T and Tata Steel saw marginal erosion in open interest positions.

FIIs selling

Overseas investors maintained their selling in the F&O segment. They were net sellers to the tune of Rs 858.65 crore on Tuesday. They were mainly net sellers in index futures (worth Rs 1,394.78) and stock futures (Rs 96.59 crore). However, they were net buyers in index options (Rs 548.79 crore) and stock options (Rs 83.93 crore). In the cash segment, also they were net sellers to the tune of Rs 1,020.7 crore, according to NSE provisional data.

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