The Hindu Business Line : Nifty call options attract attention

Market witnessed strong rally amidst improved trading volumes. The NSE F&O segment saw a turnover of 58,889.38 crore in the F&O segment on the NSE against Monday’s volume of Rs 37,943 crore. The Nifty September future ended at 4516.8 against the spot close of 4504; it also added about 17 per cent or 5.15 lakh shares in open interest positions. Cost-of-carry also jumped, indicating that lot of participants turned bullish on the market.

After a gap of long time, call options turned active and added significant number of open interest positions. The unmatched order book on the NSE of call options suggests the strong emergence of call buyers. Nifty September 4500, 4400 and 4600 strikes were prominent among them. On the other hand, the Nifty 4300 put was the most active among puts but the unmatched order book suggests the emergence of put writers, indicating that 4300 could act as strong support.

The NSE Volatility index or India VIX also painted positive bias, as it weakened to 30.45 against the previous day’s close of 31.28.

Stock futures

Reliance Industries was the most active followed by Reliance Capital, SBI and ICICI Bank. Most of the counters saw sharp accumulation of long positions, which pushed up open interest positions too. However, a few such as ICICI Bank, RNRL, DLF, ONGC and NTPC saw unwinding of long positions, particularly towards closing hours.

HDIL was the star performer in today’s trade. The September future ended at 326 against the spot close of 325.5. It added about 2.50 lakh shares in open interest positions.

However, the other realty major DLF future ended in discount at 525.05 against the spot close of 530.2. It added about 14.56 lakh shares in open interest, while cost of carry remained negative, presenting a mixed outlook on the counter.

FII activity

Foreign institutional investors turned huge buyers in the F&O segment on Tuesday to the tune of Rs 2,246.89 crore. They were net buyers in the cash segment also by Rs 1132.25 crore.

More Stories on : Derivatives Markets | On the hedge

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Sub-broker fined Rs 6 lakh for rigging

Households shift more money into shares, MFs

Mutual funds asset base rises by 2.77% in August

Auto, pharma, bank funds outperform market

Realisation to improve for IT companies

Ranbaxy shares plunge 10% intra-day

Nifty call options attract attention

Exchange traded interest rate futures likely by Dec

FIIs reduce holding in Unitech, Parsvnath Developers

Srei Infra Finance (Rs 109.1): Buy

UCO Bank to tap capital market in Dec quarter

SEBI to launch new IPO refund process on Sept 8