The Hindu Business Line : Nifty sees emergence of call writers

Chennai, Sept. 8 Despite the market gaining sharply, turnover dipped marginally to Rs 45,977.13 crore against Friday’s turnover of Rs 46,868.19 crore. The Nifty September future, however, widened its premium to 27.7 points against Friday’s figure of about 14 points. The future ended at 4510 against the spot close of 4482.3; the premium widened mainly on account of accumulation of fresh long positions in today’s trade.

Among the options, the Nifty 4600 and 4500 calls and 4500 and 4400 puts remained most active. For the first time in recent times, the calls saw the emergence of writers, while the puts witnessed accumulation. This suggests that Nifty might face strong resistance at 4500 level itself. In fact, 4500 call today shed about 0.5 per cent in open interest indicating the squaring up of call positions.

India VIX or NSE volatility index slipped to 30.77 against Friday’s close of 32.65, indicating the expected range-bound movement.

Stock futures

SBI replaced Reliance Industries as top-traded counter. Almost all the counters added sharp accumulation in open interest positions. SBI future added about 8.45 lakh shares in open interest positions and ended at 1606.1 against the spot close of 1591.75. Most of the counters’ premium widened further, indicating the accumulation of long positions.

However, the unmatched bid/ask order book for most of stock futures indicates that sellers were on the higher side. This signals the mood of investors, who wants to book profits.

FII activity

Foreign institutional investors turned net buyers in the F&O segment on Monday. They were net buyers to the tune of Rs 1,527 crore. FIIs (net) bought index futures worth Rs 954.12 crore and index options worth Rs 505.8 crore though they remained net sellers on stock futures by about Rs 147 crore.

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